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.

Read also: In Singapore’s neighbor Batam, malls empty, ferry trips reduced as virus fears lurk

"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.

Read also: Europe, Middle-East among regions poised to offset decreasing investments from China

"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.

Popular

PDI-P will likely be part of opposition: Ganjar

Indonesia one step from Olympics after beating South Korea

Bahlil leads task force to boost sugar, bioethanol production in Papua