The Batam-Karimun Industrial Zone Association (HKI) is calling on the government to revise Government Regulations No. 5/2021 and No. 41/2021 to strengthen Batam’s competitiveness as a strategic industrial zone. HKI Coordinator Adhy Prasetyo Wibowo argues that the current risk-based Online Single Submission (OSS) licensing system does not accommodate Batam’s unique status as a Free Trade and Free Port Zone (KPBPB). As a result, BP Batam lacks the authority to issue key permits such as environmental approvals (AMDAL) and spatial use licenses (KKPR), leading to delays in industrial expansion and uncertainty for investors.

HKI emphasizes that centralized control over permits creates structural inefficiencies, making Batam less attractive compared to regional competitors like Vietnam and Malaysia, which have adopted more decentralized licensing systems. To address this, HKI proposes delegating key licensing powers to BP Batam, enabling faster, more flexible regulation tailored to local needs. They stress that regulatory reform is essential for unlocking Batam’s potential as a national industrial and logistics hub. Without such changes, Batam may lose its competitive edge and fail to capitalize on its strategic advantages in Southeast Asia.

Source:
https://www.rri.co.id/investasi/1553170/dua-pp-harus-direvisi-untuk-perkuat-industri-batam