to Indonesian
a. that in the implementation of managing, developing and constructing tasks of the Batam Free Trade Zone and Free Port as stipulated in Government Regulation No. 46/2007 concerning the Batam Free Trade Zone and Free Port, the Batam Free Trade Zone and Free Port Management Board has difficulties in transferring the assets and personnel from the Batam Industrial Development Authority to the Batam Free Trade Zone and Free Port Management Board as well as in managing the finance of the Batam Free Trade Zone and Free Port Management Board;
b. that with the growing business activities and limited supporting capacity of the Batam Free Trade Zone and Free Port, it is necessary to expand the Free Trade Zone and Free Port Zone covering Janda Berias Island and its chain;
c. that based on consideration as intended in paragraph a and paragraph b, it is necessary to stipulate Government Regulation concerning Amendment to Government Regulation No. 46/2007 concerning the Batam Free Trade Zone and Free Port;
1. Article 5 paragraph (2) of the 1945 Indonesian Constitution;
2. Law No. 36/2000 concerning the Passage of Government Regulation in lieu of Law No. 1/2000 concerning Free Trade Zone and Free Port Zone into Law (Statute Book No. 251/2000, Supplement to Statute Book No. 4053) as amended by Law No. 44/2007 concerning the Enforcement of Government Regulation in lieu of Law No. 1/2007 concerning Amendment to Law No. 36/2000 concerning the Enforcement of Government Regulation in lieu of Law No. 1/2000 concerning Free Trade Zone and Free Port Zone into Law (Statute Book No. 130/2007, Supplement to Statute Book No. 4775);
3. Government Regulation No. 46/2007 concerning the Batam Free Trade Zone and Free Port (Statute Book No. 107/2007, Supplement to Statute Book No. 4757),
GOVERNMENT REGULATION CONCERNING AMENDMENT TO GOVERNMENT REGULATION No. 46/2007 CONCERNING THE BATAM FREE TRADE ZONE AND FREE PORT.
Several provisions in Government Regulation No. 46/2007 concerning the Batam Free Trade Zone and Free Port (Statute Book No. 107/2007, Supplement to Statute Book No. 4757) shall be amended as follows:
1. Provisions in Article 1 paragraph (2) shall be amended so that Article 1 is read as follows:
"Article 1
(1) Under this Government Regulation, the Batam area shall be declared as Free Trade Zone and Free Port Zone for a period of 70 (seventy) years since this Government Regulation was put into force.
(2) The Batam Free Trade Zone and Free Port as intended in paragraph (1) shall cover Batam Island, Tonton Island, Setokok Island, Nipah Island, Rempang Island, Galang Island, Galang Baru Island, and Janda Berias Island and its chains;
(3) The permanent borders and coordinate points of the area as intended in paragraph (2) shall be as contained in the map attached as the integral part of this Government Regulation."
2. In between Article 2 and Article 3, 5 (five) Articles are inserted, namely Article 2A, Article 2B, Article 2C, Article 2D, and Article 2E, they are read as follows:
"Article 2A
(1) The Head of the Batam Free Trade Zone and Free Port Management Board shall be responsible for management, development, and construction of the Batam Free Trade Zone and Free Port.
(2) The assets of the Batam Free Trade Zone and Free Port Management Board shall constitute inseparable state assets.
(3) The Head of the Batam Free Trade Zone and Free Port Management Board shall have the position as the user of budget/the user of goods at the Batam Free Trade Zone and Free Port Management Board.
Article 2B
(1) The employees of the Batam Free Trade Zone and Free Port Management Board shall consist of civil servants with the status of being employed or assigned and non-civil servants.
(2) The appointment and dismissal of non-civil servants of civil servants with the status of being employed or assigned at the Batam Free Trade Zone and Free Port Management Board is stipulated by Decree of the Head of the Batam Free Trade Zone and Free Port Management Board.
(3) The administrative fostering of the civil servants as intended in paragraph (1) shall be done by their respective parent agencies in accordance with the laws and regulations.
(4) The civil servants of the Batam Free Trade Zone and Free Port Management Board who have reached retirement age in accordance with the laws and regulations shall be honorably discharged as civil servants and be given their employee rights in accordance with the laws and regulations and employee rights in accordance with the Regulation of the Head of the Batam Free Trade Zone and Free Port Management Board.
(5) The non-civil servants of the Batam Free Trade Zone and Free Port Management Board who have reached the age limit of 56 years shall be honorably discharged as the employees of the Batam Free Trade Zone and Free Port Management Board and be given their employee rights in accordance with the Regulation of the Head of the Batam Free Trade Zone and Free Port Management Board.
(6) The employees of the Batam Free Trade Zone and Free Port Management Board who occupy certain posts and have reached retirement age, according to the need can be reemployed as employees of the Batam Free Trade Zone and Free Port Management Board until they have reached the maximum age of 60 years.
(7) If the employees of the Batam Free Trade Zone and Free Port Management Board as intended in paragraph (6) come from civil servants, they can be reemployed as the employees of the Batam Free Trade Zone and Free Port Management Board until they have reached the maximum age of 60 years and be given employee status as non-civil servants of the Batam Free Trade Zone and Free Port Management Board.
Article 2C
(1) The assets of the Batam Free Trade Zone and Free Port Management Board shall constitute assets managed by the Batam Free Trade Zone and Free Port Management Board.
(2) The state assets as intended in paragraph (1) shall be declared as state-owned goods at the Batam Free Trade Zone and Free Port Management Board by the Finance Minister.
Article 2D
(1) The financial management of the Batam Free Trade Zone and Free Port Management Board shall constitute flexible financial management that gives freedom to apply sound business practices, as an exception to provisions on the management of state finance in general.
(2) Provisions on the financial management as intended in paragraph (1) are to be provided for in a separate Government Regulation.
Article 2E
(1) The organizational structure and work mechanism of the Batam Free Trade Zone and Free Port Management Board shall be provided for in the Decision of the Chairman of the Batam Free Trade Zone and Free Port Council.
(2) The organizational structure and work mechanism as intended in paragraph (1) shall be consulted with the minister overseeing administrative affairs in the field of administrative reforms."
3. Article 3 shall be supplemented 2 (two) paragraphs, namely paragraph (3) and paragraph (4) so Article 3 is read as follows:
"Article 3
(1) All assets of the Batam Industrial Development Authority shall be transferred to the Batam Free Trade Zone and Free Port Management Board, except those already transferred to the Batam Municipal Government, in accordance with the laws and regulations.
(2) The employees of the Batam Industrial Development Authority shall be transferred to the Batam Free Trade Zone and Free Port Management Board.
(3) The service term of the Batam Free Trade Zone and Free Port Management Board’s employees from the Batam Industrial Development Authority as intended in paragraph (2) shall start since the relevant employees were named as employees of the Batam Industrial Development Authority.
(4) The service term of the Batam Free Trade Zone and Free Port Management Board’s employees as intended in paragraph (2) from civil servants employed at or assigned to the Batam Industrial Development Authority shall start since the relevant civil servants were employed at or assigned to Batam Industrial Development Authority."
4. Between Article 5 and Article 6 is inserted 1 (one) article, it is Article 5A, read as follows:
"Article 5A
When this Government Regulation begins to take effect:
a. all regulations and/or decisions issued by the Batam Industrial Development Authority can be used by the Batam Free Trade Zone and Free Port Management Board, provided they do not contradict and/or have not been set forth in new implementation regulations based on this Government Regulation.
b. all regulations and/or decisions issued by the Batam Free Trade Zone and Free Port Council shall remain valid, provided they do not contradict and/or have not been set forth in new implementation regulations based on this Government Regulation."
This Government Regulation shall come into force as from the date of promulgation.
For public cognizance, this Government Regulation shall be promulgated by placing it in the Statute Book of the Republic of Indonesia.
Stipulated in Jakarta
On February 4, 2011
THE PRESIDENT OF THE REPUBLIC OF INDONESIA,
signed,
DR. H. SUSILO BAMBANG YUDHOYONO
Elucidation of Government Regulation No. 5/2011 concerning
Amendment to government regulation No. 46/2007 concerning the batam free trade zone and free port