Jakarta. After sparked wide criticisms from businessmen, the government decided to implement new schemes of land lease tariff in Batam. The new schemes will be included under the revision of Head of Batam Industrial Development Authority (BP Batam) Regulation.
Minister of Agrarian and Spatial Planning/Head of National Land Agency (BPN) Sofyan Djalil said the new schemes will determine the ranges of the increases in land lease tariff in Batam.
The Head of BP Batam Hatanto Reksodiputro added that the schemes will set the maximum increase in land lease tariff in Batam or the annual authority preemie charge (UWTO) to not exceed 200%.
The new schemes of the tariff will be included under the revision of Head of BP Batam Regulation No 19/2016 on the Items and Tariffs of Services of the Office of Land Management at Batam Industrial Development Authority.
However, Hatanto refused to specify the revisions and the date of the issuance of the revision. “The point is, (the increase in tariff) cannot exceed 200%,” he said. Demand to the revision of Minister of Finance Regulation
However, the entrepreneurs haev noy yet satisfied with the government’s decision to reduce the rate of the increase in land lease tariff in Batam, said the Chairman of Riau Archipelago office of Indonesian Employers Association (Apindo) Cahya.
According to Cahya, the employers will remain unsecure as long as the government does not revise the Ministry of Finance Regulation No 148/2016 on Public Service Agency Service Rates of Batam Free Trade Zone and Free Port Authority.
Because, “The Head of BP Batam can issue a regulation to increase the tariff by more than 2005, as it is stipulated under the Minister of Finance Regulation,” he said.
As information, as mandated by the Minister of Regulation No 148/2016, on 18 October released the Head of BP Batam No 19/2016 on the new tariff on land lease or the annual authority preemie charge (UWTO) for terms of 20 years and 30 years that increase in a significant manner.
For an example, the tariff of land lease extension in Batam Center for a term of 30 years increased by 372% from only Rp 70,500 per meter square to Rp 333,000 per meter square.
Meanwhile, the tariff of land lease for apartment and industry in the area also increased by 467% to from Rp 51,250 per meter square to Rp 290,900 per meter square.
To date, Batam Office of Indonesian Employers Association still waits for the tariff revision. In the meantime, the government has not yet implemented the increase in land lease tariff in Batam.
(Muhammad Farid/Translator)
