REPUBLIKA.CO.ID, BATAM -- The Indonesian Regional Representative Council (DPD) plans to seek an explanation from Chief Economic Minister Darmin Nasution about the government's plan to dissolve the Batam Free Trade Zone Authority (BPK FTZ).

"We plan to meet the minister to know the decision that will be taken on the Batam Free Trade Zone's management," stated Haripinto Tanuwidjaya, a member of Committee IV of the DPD on Thursday.

He said he was unaware about the government's plan to take a decision on the BPK FTZ. But he hoped that whatever was decided about the free trade zone in Batam, it would ensure certainty of doing business in Batam.

Haripinto also asked the government to focus on handling the overlapping authorities between the Batam City administration and the Batam Free Trade Zone Authority.

"It should not merely focus on whether it should be dissolved but on how to remove the authority from overlapping," he stated.

According to the DPD member, the overlapping authority over the Batam Free Trade Zone had led to a decline in investment in Batam, compared with investment in other areas in Indonesia.

He said as a result of the overlapping of authority, the issuance of business licenses had become protracted and disadvantaged investors.

"Investors want certainty, simple and fast issuance of business permits. It seems that importing automotive to the free trade zone for example needs a longer time than importing it to Jakarta. This is contradictory to the aim of Batam to make business easy," he said.

The central government has evaluated the performance of the Batam FTZ, including that of the Batam Free Trade Zone Authority. Batam is yet to be seen as successful in increasing investment although it has been provided with various facilities for investment.

Home Affairs Minister Tjahjo Kumolo announced recently that the central government was planning to dissolve the Batam Free Trade Zone Authority to end the duplication of authority in Riau Islands province's most developed region.

Tjahjo said data showed that for the last decade, the government had lost Rp 20 trillion (US$1.4 billion) in potential tax revenue from Batam, while the investment value entering the municipality was incomparable.

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