Govt stands firm on Batam bill

Govt stands firm on Batam bill

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

Despite its endorsement by the House of Representatives, the
Batam free trade zone (FTZ) will not materialize due to the
government's opposition, a minister says.

Minister of Justice and Human Rights Yusril Ihza Mahendra told
reporters on Saturday that President Megawati Soekarnoputri had
refused to sign the FTZ bill into law.

"Even if the House endorsed it, the bill cannot be enacted
into law without the government's consent," he said, referring to
article 22 of the Constitution, which requires a bill to be
agreed to by both the government and the House before it can
become law.

The article also says that if a bill is rejected by the
government, the draft cannot be moved again during the same
session of the House.

"This means that the article that says that a bill
automatically becomes law 30 days after its endorsement by the
House if the president refuses to give her consent is not
applicable," Yusril said.

He had earlier said that the issue would have to be settled by
the new government and the House during the next House session.

The fate of Batam's free trade zone, therefore, remains up in
the air following the controversy over the bill's endorsement by
the House.

The controversy arose following the decision of the House
plenary session on Sept. 14 to pass the bill despite the House's
earlier agreement with the government on Sept. 10 to drop it due
to disagreements on several contentious articles.

One of the disputed articles in the government-proposed bill
is the plan to limit FTZ status to certain industrial areas on
the island, known also as "enclave FTZs", while the House bill
envisages the whole of Batam Island be granted full FTZ status.

The other disputed article concerns the authority to manage
seaports and the airport on Batam. The government wants to retain
this authority, while the House says that it should be delegated
to the local administration.

The House had actually completed its own draft a few years
ago, but the government rejected it, and drafted its own version
instead, which was submitted to the House for deliberation.

To settle the dispute, the Constitutional Court has suggested
that the government challenge the bill before the court.