Tue, 21 Sep 2004

Govt told to seek review of Batam free trade bill

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

Constitutional Court President Jimly Asshidiqie said on Monday the government had strong grounds for challenging the constitutionality of the recently endorsed Batam free trade zone bill.

Jimly said a bill required the consent of both the House of Representatives and the government before it could be passed.

He was commenting on the House's unilateral endorsement of its bill granting Batam Island free trade zone (FTZ) status last week.

"Actually, we cannot call on the government to challenge the bill. But, I think it must be settled. The government has strong grounds for filing a complaint with the Constitutional Court to seek a resolution to the matter," Jimly told reporters after casting his vote.

The government could challenge the bill by arguing that the House did not have the power to endorse it or that there were flaws in its endorsement process, Jimly said.

Article 20 (1) of the Constitution said the House had the right to initiate legislation. There was no stipulation about the government's role here, but section (2) of the same article stated that a bill must be jointly deliberated by both the government and the House, and its endorsement must be based on the consent of both parties.

Jimly said a bill would automatically come into effect one month after its endorsement by the House, regardless of whether the consent of the president was forthcoming or otherwise.

"But, isn't it the government that must enforce the legislation? The legislation will mean nothing if the government refuses to enforce it" Jimly said.

He said he was concerned by the fact that the President had refused to sign some bills, including those on manpower protection, the education system and the establishment of Riau Islands province.

The controversy surrounding the bill on the Batam free trade zone surfaced after the House passed it during a plenary meeting on Sept. 14 despite earlier agreement with the government to delay its endorsement due to disagreements over several contentious articles.

One of the areas of dispute is the government's desire to have FTZ status restricted to only certain industrial areas on the island, known also as "enclave FTZs", while the House wants the whole island to be granted full FTZ status.

Another area of disagreement deals with the authority to manage seaports and the airport in Batam. The government insists on retaining this authority, while the House says the local administration should be given these powers.

The House completed its own draft bill a few years ago. But the government rejected it, and instead drafted its own version, which was completed earlier this year.