Forestry Minister’s Decree Letter Hampers Investment in Riau Island

Forestry Minister’s Decree Letter Hampers Investment in Riau Island

OMBUDSMAN stated Forestry Minister’s Decree Letter (SK) No. 463/2013 about maritime area in Riau Islands is falsely administrated. The SK, issued when Zulkifli Hasan served as Forestry Minister, neglects Presidential Regulation (Perpres) No. 87/2011 about Spatial Plan for Batam, Bintan, and Karimun (BBK).

“The SK hampers public service process in Batam Island and Riau Islands since it emerges legal uncertainty for people and business sector especially for investment permit, land administration, and banking service,” said Ombudsman Chairman, Danang Girindrawardana, during press conference reading Ombudsman’s recommendation in his office on HR Rasuna Said Avenue, South Jakarta, on Friday (1/9).

Danang explained the Perpres stated the areas of Tanjung Uncang, Tanjung Gudap, Batu Ampar, Telaga Punggur, and Sekupang are industrial areas. However, in the SK, the areas are assigned as forest areas.

Moreover, Danang said, the SK overlaps the laws regulating BBK areas as free trade and free port areas. The SK also does not concern the existing condition by assigning the areas of Batam Center and Batu Aji as forest areas. Whereas, in the locations, there have been governmental offices. “Due to the SK, 22 thousand houses and 49 shipyards are deemed illegal since those are located in forest area,” he explained.

Danang said another bad impact from the SK is to hamper investment. The investors, who have met permit requirements and obligations to pay taxes, lose their rights due to forest area change.

Therefore, he recommended Environment and Forestry Minister to issue a new SK to revamp the regulation. “According to Article 38 of Law No. 37/2008 about Ombudsman, the recommendation it has issued must be conducted,” he asserted.

Maritime Coordinating Minister, Dwisuryo Indroyono Susilo, expected for legal certainty over BBK areas since those are productive areas. “110 shipyards located in Batam are the most productive. It has significant growth and opens many employment opportunities,” Indroyono said.

He said in Tanjung Uang and Selauki, there will be offshore rigging platforms with equivalent gas of 7 million barrels per day. Moreover, there will also be gas-fueled power plants at the locations.

Batam Management Agency Head, Mustofa Widjaya, said until now, investors are still worried to develop BBK due to legal certainty issue. “Investors want the places to be deemed legal including our offices and Mayor’s office,” Mustofa said. (Rakyat Merdeka)