Government to Audit Batam Management Board

The government has finally officially established the Management Board of Batam Free Trade Zone, which eventually put an end to dual authority in the area between the Batam Management Board (BP Batam) – previously Batam Authority Board – and Batam municipal government. The conflict has made it difficult for investors to invest in the area.

A quick decision was needed because the chaotic management of Batam has clouded the investment climate on the island. Some 30 percent of investors in Batam were reported to have threatened to pull out of the island (Read: 30 Percent of Industries in Batam Threaten to Pull out of Indonesia).

To end the overlapping authority in the area, the government has set up the Management Board of Batam Free Trade Zone, which is chaired by the Coordinating Minister for Economic Affairs Darmin Nasution under Presidential Decree No. 8/2016.

Darmin inaugurated the new management of the board on Tuesday (5/4) by Decree of Coordinating Minister for Economic Affairs No. 43/2006. Following the formation of the new management, the government, through the Financial and Development Supervisory Agency, will audit the board. (Read also: Government Makes Quick Decision on Batam)

The audit comprises of financial, operational and legal audits. The financial audit includes examining the board’s use of budget and financial statements as well as investigating its assets, which include Hang Nadim airport, harbours, hospitals, an agribusiness management agency, Batam IT Centre, the Jakarta representative office and office buildings.

The operational audit will include examining lands and land rights awarded by BP Batam, its human resources/employees and all licences and agreements awarded and entered into by the board. Lastly, the legal audit will include examining all legal aspects and relevant laws and regulations. “The policy complies with the directive of President Joko Widodo,” said Darmin during the inauguration of the board at his office on Tuesday (5/4).

Members of the board, including Finance Minister Bambang Brodjonegoro, Minister of Agrarian Affairs and Spatial Management Ferry Mursidan Baldan, Minister of Home Affairs Tjahjo Kumolo, Minister of Law and Human Rights Yasonna S Laoly, Police Chief Badrodin Haiti, the speaker of Riau Provincial Parliament, and the mayor of Batam were present at the event. (Read: Jokowi: Industry Must Be Freed from Over Regulations)

The new management board is chaired by Hatanto Reksodipoetro with Agus Tjahajana Wirakusumah as deputy chair. The members of the board consist of former Director General of Tax Sigit Priadi Pramudit, as deputy for administration and general affairs; Junino Jahja as deputy for planning and development;Eko Santoso Budianto as deputy for business facility development; Purba Robert M. Sianipar as deputy for other facility development; and Gusmardi Bustami as deputy for public services.

“Not only is this an important duty, but many want to see this succeed. We want an area that will make all of us proud. And this will serve to prove to the Indonesian people that we can do something important,” said Darmin.

sources : internet