House threatens to endorse FTZ bill without govt consent
House threatens to endorse FTZ bill without govt consent
Rendi A. Witular, Jakarta
Angered by the absence of key ministers during a hearing to
deliberate on a bill about the free trade zone (FTZ) for Batam
Island, a senior lawmaker warned the government on Tuesday that
the House of Representatives would endorse the bill without the
government's consent.
Surya Dharma Ali, chairman of the special House committee
tasked to deliberate the FTZ bill, said the absence of the
ministers might put at risk efforts to endorse the bill by the
Sept. 14 deadline.
"The House and the government have agreed that the bill should
be endorsed this month in order to increase the confidence of
foreign investors and ensure legal certainty for companies
currently operating on the island," said Surya.
"Like it or not, the House will try to endorse it without
consulting first with the government," he said.
The hearing on Tuesday was supposed to be attended by Minister
of Trade and Industry Rini Soewandi, Minister of Finance
Boediono, Minister of Home Affairs Hari Sabarno, and Minister of
Justice and Human Rights Yusril Ihza Mahendra.
However, only Attorney General MA Rachman showed up on Tuesday
on behalf of Yusril, who is on an overseas trip.
Boediono and Hari did not give any reason for their absence,
while Rini said that her decision not to attend the meeting was
due to the absence of Yusril, and due to the fundamental
differences between the government and the House regarding three
articles in the proposed bill.
In a letter sent to the House, Rini said the articles included
the government's proposal to grant FTZ status, but only in
certain industrial areas on the island, known also as "enclave
FTZs", while the House recommends the whole of Batam Island be
granted full FTZ status.
The other articles are on the authority to manage seaports and
the airport in Batam, and on how to determine the neighborhood
units (locally known as RT) and community units (known as RW).
The letter by Rini also suggested that the House cancel the
hearing until further notice, or unless all key ministers agreed
to attend the hearing.
Surya said the decision by Rini and other ministers not to
attend the hearing was a form of "sabotage" on the part of the
government to prevent the House from endorsing the bill.
Surya said the special committee would give the government
another chance to show up at an upcoming meeting scheduled for
Thursday, or else the committee would propose to the House
plenary meeting to immediately endorse the bill.
The House and the government have each proposed separate
bills, one of the few times in recent years that such an instance
has occurred. A bill is usually proposed by either the government
or the House.
The House, which is empowered by the Constitution to draw up a
bill, completed its draft several years ago. However, the
government refused it and instead drafted its own version, which
was completed earlier this year.
A further delay in defining Batam's FTZ status carries with it
the fear that it will harm the investment climate on the island
-- one of the most modern investment destinations in the Asia-
Pacific region.