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GovttodissolveBatamfreetradezoneauthorityin2016|TheJakartaPost

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Govt to dissolve Batam

free trade zone authority
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Fadli,TheJakartaPost,TanjungPinang|Archipelago|Thu,December312015,3:09PM

HomeMinisterTjahjoKumoloannouncedonWednesdaythatthecentral
governmentwasplanningtodissolvetheBatamFreeTradeZone
Authority(BPKFTZ)nextyeartoendtheduplicationofauthorityinRiau
Islandsprovincesmostdevelopedregion.
Tjahjosaiddatashowedthatforthelast10yearsthegovernmenthad
lostRp20trillion(US$1.4billion)inpotentialtaxrevenuefromBatam,
whiletheinvestmentvalueenteringthemunicipalitywasincomparable.
Basedonourobservations,therehasbeenaduplicationofauthority
andconflictsofauthoritybetweentheBatamBPKFTZandBatam
municipaladministration,makingthisregionunabletodevelop.The
mission[oftheinstitution]tolureinvestorsfromSingaporealsohasnot
runasexpected,TjahjosaidintheprovincialcapitalofTanjungPinang
onthesidelinesoftheinaugurationofactingRiauIslandsgovernor
Nuryanto.
TjahjosaidthedissolutionoftheBatamBPKFTZhadbeenapprovedin
arecentCabinetmeeting.
Themove,hesaid,wouldbespedupwiththeissuanceofagovernment
regulation,asissuingalawwouldtakelonger.
TjahjoalsosaidthattheexistenceoftheBatamBPKFTZ,whichwas
previouslynamedtheBatamAuthority,wasnolongereffective
accordingtoanevaluationconductedbyPresidentJokoJokowi
Widodosadministrationlastyear.
Batamhaslongbeenreceivingspecialfacilities.Itsnowtimetoendit,
hesaid.
HesaidJokowihadbeenverysupportiveofthepolicyasthePresident
hadforalongtimesharedtheconcernabouttheperformanceofthe
BatamBPKFTZ.
Thatsthepoint.Manyinvestorshaverunaway[fromBatam].The
Singaporeangovernment,meanwhile,isexpectingtopartnerwithRiau
Islands,hesaid.
WithregardtotheemployeesoftheBatamBPKFTZ,whoamountto
over2,000people,Tjahjoexpressedoptimismthattheproblemwouldbe
handlednextyear.
BatamBPKFTZheadMustofaWidjaja,meanwhile,declinedtocomment
onTjahjosstatementregardingtheplanneddissolutionofhisinstitution.
MustofaunderlinedthattheBatamBPKFTZ,whichwasestablishedin
1971,wasastrategicpartnerforthemunicipaladministration.
Bothmutuallyneedeachother,hesaid.
BatamreferstobothanislandandmunicipalityintheRiauIslands.The
BatammetropolitanareaconsistsofthreemainislandsBatam,
RempangandGalangallconnectedbythe642meterBarelang
Bridge.
Hometomorethan1millionpeople,Batamisalsothethirdlargestcityin
SumatraafterMedaninNorthSumatraandPalembanginSouth
Sumatra.
http://www.thejakartapost.com/news/2015/12/31/govtdissolvebatamfreetradezoneauthority2016.html

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1/5/2016

GovttodissolveBatamfreetradezoneauthorityin2016|TheJakartaPost

RiauIslandsBatam,BintanandKarimunislands,meanwhile,arehome
tohundredsofpremiumresortsandshoppingestablishments,largely
becauseofmarinetourismandaccessibilityfromSingapore.
DatafromtheCentralStatisticsAgency(BPS)showedthatBatam,
Bintan,KarimunandTanjungPinangwerethedominantdestinationsin
theprovincewith1.1million,230,000,71,000and66,000foreigntourists
visitingeacharea,respectively,duringSeptemberthisyear.
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LUWANTO

5daysago

IamnonplussedtoreadalossofUS$1.45billionintaxrevenueinBatamovera10yearsperiod
asperHomeMinisterTjahjoKumolo.Howhederivedatthisfigureismindbogglingbecausethe
factremainsesp.forBatamIsland,thattheShipbuildingindustry(startingwithMcDermots
massiveoperationsontheislandin1998)togetherwithabout200shipyardsandoffshoremarine
relatedcompanies(over10years)providedmassiveamountsoftaxestotheCentralGovernment.
AddinthetaxespaidbyForeignManufacturingCompaniesthatwerehousedwithinandoutside
theBatamindoDistrict,plusthosetaxespaidbyforeignandlocalemployees,thesumtotalwould
surelyhaveexceededUS$1.45b..
TheBPKFTZisthebrainchildofEx.Pres.Habibie.
ItisinrecenttimesthattheshipbuildingindustrybecamesluggishduetotheGovtslegislationof
theCabotageLaws.
LUWANTO
31Dec2015

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