Power struggle mounting in Batam
Fadli, The Jakarta Post, Batam
The conflict between the Batam administration and the Batam Industrial Development Authority (BIDA) has been mounting after the local administration issued numerous permits to companies following the implementation of regional autonomy on the island.
Many domestic and foreign investors have been confused as both sides have claimed they have the authority to deal with investors and their investments in industrial zones on the island.
BIDA has said that, based on Law No. 53/1999 and Presidential Decree No. 74/1971 on industrial zone development, it was the single institution established by the government to supervise industrial development on the island. But the local administration has also claimed its authority to perform the same function in accordance with the regional autonomy law.
Ismeth Abdullah, BIDA chairman, said there should be no overlapping authorities on the island and that the local administration should coordinate with BIDA and the central government in carrying out its development programs.
"Therefore, the Home Affairs Ministry should coordinate with the Trade and Industry Ministry and the Investment Coordinating Agency (BKPM) to resolve the prolonged conflict.
"We are waiting for the promulgation of a government regulation on how the Batam administration and BIDA should coordinate their efforts in dealing with industrial development on Batam and other islands in the Riau archipelago," he said in an interview with The Jakarta Post here recently.
According to him, BIDA has its own authority to issue permits to foreign investors and to manage the seaports and airport on the island.
"So far, BIDA has issued more than 50 permits for foreign investors while other foreign companies on the island have secured their permits from the central government," he said.
He said the total domestic and foreign investments on the island had reached US$ 8.360 billion.
Separately, Batam Mayor Nyat Kadir declined to make further statements on the mounting conflict in an attempt to calm the situation.
He urged the central government to issue a regulation on how both sides should co-operate to develop the island.
"Batam has many other urgent problems than this one to solve," he said without elaborating.
He admitted he had granted numerous permits to a number of companies on the island but said it was in line with the implementation of regional autonomy.
Marganas Nainggolan, chief editor of the daily Sijori Pos in Batam, called on all mass media outlets to remain neutral and independent in the face of the conflict between the two government institutions.
He admitted that the conflict had caused confusion among both local people and foreign investors and said the central government should take the necessary measures to resolve it.
"Many foreign investors will decline to invest on the island unless political and legal certainty is maintained," he said.
Hasan, chairman of the Malay Youth Organization, locally known as Masyarakat Tempatan, said that the conflict had risen to the surface because the local administration had for a long time performed minor functions dealing with death, garbage and identity card affairs.
"We want both to work hand in hand to develop the island because millions of people from other provinces have invested their futures in their children and relatives employed by domestic and foreign companies on the island," he said.
Svein Moldskred, general manager of the star-rated Batam View Hotel and Resort, admitted many foreign investors had been confused by the mounting conflict between the local administration and BIDA.
"Both institutions should provide a one-stop service to the public, including foreign investors," he said cautiously.