Batam Assessed to Need Simpler System for Business and Investment

Jakarta – Economist and visiting lecturer at Batam State Polytechnic Billy Mambrasar has argued that simplifying Batam’s economic zone policy framework by eliminating the National Strategic Projects (PSN), Special Economic Zones (KEK), and Special Economic Zone (SEZ) schemes is necessary.

Mambrasar made these remarks whilst delivering a guest lecture at Batam State Polytechnic on the topic “Making Batam Indonesia’s UMKM Export Hub” recently.

According to him, such a step could accelerate business processes and enhance investment certainty in Batam.

In his presentation, Mambrasar also responded to ongoing policy dynamics that have been the subject of public discussion, including recent debate between Li Claudia Chandra and Purbaya Yudhi Sadewa in Jakarta regarding the direction of economic zone development in Batam.

“Economic zone schemes such as PSN, KEK, and SEZ in Batam risk creating bureaucratic complexity if not managed simply and in an integrated manner,” said Mambrasar, who is currently pursuing a degree in economics at the University of Buckingham in England.

He explained that Batam has actually held Free Trade Zone (FTZ) status from the outset, which provides various investment facilitations ranging from import duty exemptions to fiscal incentives for business operators.

“Economically, the facilities typically provided in Special Economic Zones are actually already available in Batam from the beginning. Therefore, adding various new zone designations risks creating policy complexity,” said the Harvard University graduate.

According to him, in practice, investors seeking to establish industry in Batam often must coordinate with multiple agencies simultaneously, ranging from the local government, BP Batam, relevant ministries, to additional regulations related to national strategic projects and special economic zones.