Online Licensing Eases Investment in Batam

To overcome licensing difficulties in the free trade zone and free port of Batam, the Badan Pengusahaan (BP) Batam officially launched the Indonesia Batam Online Single Submission (IBOSS). The integrated online licensing system was launched on May 27, 2021 at the Grand Galaxy Ballroom of Planet Holiday Hotel in Batu Ampar, Batam City, Riau Islands province.

Chairman of BP Batam, Muhammad Rudi, said IBOSS’s purpose was to facilitate licensing arrangements for investments in Batam. The system covers various areas of service including investment, capital investment and licensing to make it easier for businesses both at home and abroad to manage licensing in Batam. The online system also minimizes face-to-face contact between permit applicants and officers, thus avoiding possible fraud and other violations.

Meanwhile, specific licensing for ports has been regulated through a consignment by the Harbormaster and Port Authority Office (KSOP) since Aug. 14, 2021. Licensing services for the port sector in the transportation department are issued by BP Batam through the One Stop Integrated Services Directorate (PTSP).

According to Government Regulation (PP) No. 41 of 2021 concerning the implementation of free trade zone and free ports, BP Batam has a wider scope of authority in terms of licensing in the free trade zone and free port of Batam. BP Batam authorization of IBOSS is an attempt to address several complaints from potential investors. Some of the problems include the unnavigable bureaucracy, lack of adequate information regarding licensing procedures and the time needed to process documents in central and regional administrations.

Muhammad Rudi said, “Online licensing system has been applied as part of the government’s commitment to support investment climate in Batam, with the increased investment in the region, which will make a significant contribution to local and national economic growth.”

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