New Risk-Based Oversight for Batam Trade: Sub-70% Compliance Scores Set to Trigger Immediate License Suspension

The Head of Batam Free Trade Zone (“ FTZ ”) and Free Port Authority (Badan Pengusahaan Kawasan Perdagangan Bebas dan Pelabuhan Bebas Batam- “ BP Batam ”) has issued the new Regulation No. 8 of 2026 (“ Regulation 8/2026 ”), revoking the previously enforced Regulation No. 25 of 2021 (“ Regulation 25/2021 ”), to overhaul the flow of goods into and out of the Batam FTZ. [1] This framework significantly tightens the quota mechanisms for excisable and consumption goods, drastically shortens the validity period for importing alcohol and tobacco, and introduces a quantified compliance matrix. [2]