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Batam special province sought to optimize investment climate
In a move that many say would give Batam, Riau Islands, a competitive advantage over neighboring countries in attracting investment, the central government is being called on to turn the municipality into a special province
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n a move that many say would give Batam, Riau Islands, a competitive advantage over neighboring countries in attracting investment, the central government is being called on to turn the municipality into a special province.
The hope was expressed following the central government's decision to establish a team to prepare for such a move.
Riau Islands' senior politician Harry Azhar Azis of the Golkar Party warned that the establishment of Batam as a special province had to be conducted in such a way that it ensured Batam could compete economically with neighboring Malaysia and Singapore.
However, he said, the plan to establish Batam as a special province would be fully dependent on the goodwill of president-elect Joko 'Jokowi' Widodo.
'Making Batam a special province will be realized only if the president-elect really sees it as important,' said Harry, who was recently elected a member of the Supreme Audit Agency (BPK).
However, he said that merely clarifying jurisdictional ambiguities between the Batam city administration and the central government officials in charge of managing the Batam Free Trade Zone was insufficient justification for turning Batam city into a special province.
Harry added that the establishment of Batam special province could be accomplished by copying the design of Jakarta province, with regencies and municipalities led by mayors and regents who were appointed by the governor.
Meanwhile, Batam Islamic Students Alumni Association (Kahmi) chairman, Iskandar Zulkarnen Nasution, said that the establishment of Batam special province would indirectly end the de facto segregation of the province's native population and newcomers.
'Newcomers so far have been concentrated in Batam, while indigenous communities are concentrated in Bintan, Karimun, Lingga and others,' Iskandar said.
- Planned special province could help region compete with neighboring Malaysia and Singapore for investment
- The move would indirectly end the geographic division between province's native population and newcomers
He added that Kahmi would set up a team with the Indonesian Economists Association (ISEI) to study if the establishment of Batam special province would be wise from an economic standpoint.
'We want Batam special province to have powerful authority in handling investment matters, rather than [investment matters] being managed by the central government, as it is presently,' Iskandar said.
Batam is currently part of Riau Islands province, which was established in 2002 and is located just 20 kilometers from Singapore. Of some 2.1 million residents, over half live in Batam municipality. The rest are spread among the regencies of Bintan, Tanjung Pinang, Lingga, Natuna and Karimun.
Previously, director of regulation litigation of the Law and Human Rights Ministry, Nasrudin, said that the planned establishment of Batam province was motivated by overlapping authority between Batam Free Trade Zone officials and the Batam city administration.
'The problems [associated with confusion over jurisdiction] have triggered financial losses to both investors and to the people,' Nasrudin said.
Responding to the planned establishment of Batam special province, Riau Islands Deputy Governor Soeryo Respationo said that he had yet to receive information regarding the plan.
'As long as it is done for the sake of the people, why not?' Soeryo said, who is also chairman of the Indonesian Democratic Party of Struggle's (PDI-P) Riau Islands branch.
