to Indonesian

Elucidation
of
Government regulation No. 5/2011 concerning
Amendment to Government Regulation No. 46/2007
concerning
the Batam free trade zone and free port

I. GENERAL

Under Government Regulation Number 46 of 2007 concerning Batam Free Trade Zone and Free Port, the Batam zone is declared as Batam Free Trade Zone and Free Port. The zone covers Batam Island, Tonton Island, Setokok Island, Nipah Island, Rempang Island, Galang Island, and Galang Baru Island.

One of the islands above is Batam Island which was formerly the working area of the Batam industrial zone managed by the Batam Authority. In the transfer of assets and employees from the Batam Industrial Development Authority to the Batam Free Trade Zone and Free Port, thee has been an obstacle because the assets of the Batam Industrial Development Authority constitute state assets while at the same time there has been no regulation on the status of assets or goods at the Batam Free Trade Zone and Free Port. In addition, there has been no regulation on the employees of the Batam Free Trade Zone and Free Port. Likewise, there has been no regulation on financial management since the financial management of the Batam Free Trade Zone and Free Port is different from that of the Batam Industrial Development Authority.

In line with the growing business activities and in view of 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 to cover Janda Berias Island and its chain.

Therefore, by the above matters, it is necessary to amend Government Regulation Number 46 of 2007 concerning Batam Free Trade Zone and Free Port.

II. ARTICLE BY ARTICLE

Article I

Point 1

Article 1

Self-explanatory.

Point 2

Article 2A

Self-explanatory.

Article 2B

Paragraph (1)

The employees of the Batam Free Trade Zone and Free Port Management Board do not include the Head and Members of the Batam Free Trade Zone and Free Port Management Board appointed by the Batam Free Trade Zone and Free Port Council.

Paragraph (2)

Self-explanatory.

Paragraph (3)

Self-explanatory.

Paragraph (4)

Self-explanatory.

Paragraph (5)

Self-explanatory.

Paragraph (6)

Self-explanatory.

Paragraph (7)

Referred to as “certain post” is a post which is one level below that of members of the Batam Free Trade Zone and Free Port.

Article 2C

Paragraph (1)

Referred to as “assets” are state-owned goods.

Paragraph (2)

Self-explanatory.

Article 2D

Self-explanatory.

Article 2E

Self-explanatory.

Point 3

Article 3

Self-explanatory.

Point 4

Article 5A

Self-explanatory.

Article II

Self-explanatory.

Supplement to Statute Book of the Republic of Indonesia No. 5195