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Jakarta Post

Batam, investment agency integrate licensing system to ease doing business

  • Eisya A. Eloksari

    The Jakarta Post

Jakarta   /   Tue, March 10, 2020   /   05:33 pm
Batam, investment agency integrate licensing system to ease doing business Investment Coordinating Board (BKPM) head Bahlil Lahadalia (left) and Batam Indonesia Free Trade Zone Authority (BP Batam) head Muhammad Rudi (right) pose for a picture after signing a memorandum of understanding on the implementation of the Indonesia-Batam OSS System (IBOSS) in Jakarta on Monday. (JP/Eisya A. Eloksari )

Batam in Riau Islands is set to implement a new online single submission (OSS) platform, namely the Indonesia-Batam OSS System (IBOSS), in an effort to digitize the issuance of business licenses in the region. 

The Batam Indonesia Free Trade Zone Authority (BP Batam) and the Investment Coordinating Board (BKPM) signed a memorandum of understanding (MOU) on Monday to launch the system.

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"We’ll focus on accelerating the realization of investments and easing the process of registering business permits with this system," said BKPM head Bahlil Lahadalia, adding that Batam as a Free Trade and Port Zone Authority (KPBPB) is a center for imports and exports that requires its own OSS sub-system.

IBOSS is a subsystem of the existing national OSS and allows businesspeople to register all their business licenses online. The subsystem also records data on foreign direct investments (FDI), domestic investments (PMDN) and small and medium enterprises (SMEs) in the Batam area.

“If there are any complaints or land-use issues, for example, we can identify them quickly,” Bahlil said, adding that BP Batam should immediately revoke the land utilization permit of anyone, especially businesses, that had no development plans for the plot of land they owned.

Meanwhile, Batam Mayor and BP Batam head Muhammad Rudi conceded that land disputes had hampered investment, adding that the majority of land in Batam had been allocated to businesses even though they were left empty.

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"Many investors have shown an interest in investing in Batam," he said. “But many problematic regulations still hamper the process. We don’t feel like Batam is a real free-trade zone.”

Rudi added that the OSS subsystem would only be implemented in Batam but expressed his hope that a similar mechanism could be implemented in other parts of Riau Islands province.