Revision to the Batang Integrated Industrial Zone Regulation Addresses BUMN Assets and New Investments

The Coordinating Ministry for Economic Affairs is finalizing the Draft (“Draft Regulation”) No. 106 of 2022 on Accelerating Investment through the Batang Integrated Industrial Zone (“KIT Batang”), Central Java. Suroto, Assistant Deputy for Economic Zone Development and Strategic Projects at the Coordinating Ministry for Economic Affairs, explained that this revision is necessary following the issuance of the Regulation of the Government on the Batang Industropolis Economic Zone.

“Given several notes in the approval of the initiative permit, as well as the issuance of the Regulation of the Government on the Batang Industropolis Economic Zone, synchronization is required, particularly in terms of planning and institutional aspects, between KIT Batang and the Batang Industropolis Economic Zone,” Suroto stated.

In terms of substance, Draft Regulation will address several matters, including the certainty of the transfer of state-owned property (“BMN”) and assets of state-owned enterprises (“BUMN”), the inclusion of foreign parties in the cooperation guarantee scheme, and the expansion of investment opportunities into new sectors, such as submarine cable landing stations and data centers.

“The substance of the Draft Regulation will undergo a harmonization process, taking into account concerns on the approval of initiative permits,” he added.