August 28, 2025 | 10:29 pm
TEMPO.CO, Jakarta - The government plans to expand the authority of the Batam Investment Coordinating Board (BP Batam) to cover 14 islands from the previous 8. The plan was conveyed in a public consultation on the amendment of Government Regulation No. 46 of 2007 concerning the Free Trade Zone and Free Port of Batam.
Deputy for Coordination of Energy and Mineral Resources of the Coordinating Ministry for Economic Affairs, Elen Setiadi, said President Prabowo is putting great hope in Batam to become Indonesia's leading economic zone to improve resident welfare.
"The President's direction on March 13 and May 22, 2025, is for BP Batam to improve the community's welfare through economic growth, simplified regulations, licensing, land settlements, optimization of strategic sectors, and tourist destinations," said Elen.
The central government has also set a target for Batam's economic growth to exceed the national level by 2 percent, amounting to 10 percent. The Central Government has provided support through the issuance of Government Regulations No. 25 of 2025 and No. 28 of 2025 to encourage BP Batam to play a more optimal role as a logistics, manufacturing, and international trade hub.
Elen further explained that changes in Government Regulation No. 46 of 2007 involve the expansion of the BP Batam area. "Previously 8 islands, now increased to 14 islands and a small portion of sea territory," he said.
He hopes that with this expansion, investments that cannot be accommodated in Batam can be optimized in the surrounding areas, which also have BP Batam facilities due to this expansion. "New areas will be given the same facilities as the Batam FTZ. This means there will be new areas with superior facilities and convenience," said Elen.
During the same event, Deputy of Strategic Policy and Licensing of BP Batam, Sudirman Saad, presented the draft revision to the regulations. Sudirman ensured that surrounding residents can still live normally despite the developments and investments. "We need to protect the coastal environment, and the fishers' catchment areas will continue to be respected," he said.
Likewise, for private entities already present in the expansion area, their rights will be recognized until the end of their term. "The land rights that existed before entering the FTZ will be recognized until the end of their term," he said.
In BP Batam's official statement, the main objective of the area expansion is to promote Batam's economic growth to be more competitive, create a conducive business climate, strengthen Batam's role as a center of logistics, manufacturing, international trade and tourism, and provide legal certainty through the integration of land and sea territories within the BP Batam area.
The public consultation event was marked by protests from students of the Riau Islands University (Unrika) who participated in the event.
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