Presidential decree allows BP Batam to request forest release directly, cutting red tape
A major regulatory shift now allows BP Batam to directly request forest land releases—a move expected to accelerate legal land availability and investment in Batam’s free trade zone.
President Prabowo Subianto has officially granted BP Batam the authority to request forest land release directly from the Ministry of Environment and Forestry (LHK). The mandate is laid out in Presidential Regulation (Perpres) No. 21 of 2025 concerning Land Provision in Free Trade and Free Port Zones (KPBPB).
Previously, such requests were limited to ministers, high-ranking officials, regional heads, and private parties—submitted directly to the LHK Minister as regulated under Ministerial Regulation No. 7 of 2021. With this new decree, BP Batam now stands on par with national institutions in initiating land release procedures.
Streamlining Land Availability and Investment
The regulation is regarded as a significant milestone in investment facilitation. According to BP Batam Head Amsakar Achmad, the direct authority removes multiple bureaucratic hurdles and enables faster land preparation in legally recognized zones.
“This new mandate inspires fresh momentum at BP Batam,” Amsakar stated on May 6, 2025. “It simplifies investment procedures and ensures faster project realization, which in turn fuels economic growth and public welfare.”
Restructuring the Application Route
In addition to empowering BP Batam, the regulation also restructures how individuals and businesses may submit requests. Private entities, legal bodies, and community groups can no longer allowed to send forest release requests directly to the Ministry. Instead, these must now be funneled through the BP Batam authority, effectively positioning it as the central gateway for land development in Batam’s free trade area.
This reform is expected to improve transparency and coordination, ensuring all applications align with the strategic development goals set for KPBPB Batam.
Cutting Bureaucratic Delays
Amsakar emphasized that excessive bureaucracy has long posed a bottleneck for investors in Batam. With Perpres 21/2025, a more responsive system will be implemented, significantly reducing waiting times for land access approvals.
He added that the change is expected to make Batam more competitive among Indonesia’s investment destinations by creating a predictable and supportive legal environment for enterprises.
Government Support for Regional Transformation
Amsakar expressed deep gratitude to the central government, viewing the policy as a form of national support for Batam’s economic transformation. “This authority is a recognition of Batam’s strategic role. It empowers us to push ahead as a key engine of national growth,” he said.
BP Batam now sees this regulation as a historic turning point to position KPBPB Batam as a dynamic, investment-ready economic zone.
A National Model for Decentralized Investment Facilitation
The move aligns with Prabowo’s broader push to decentralize land regulation and streamline infrastructure development. It sets a precedent for other free trade zones nationwide, showcasing a model where regional bodies are trusted with higher-level regulatory duties to accelerate economic targets.
This presidential directive reshapes how Batam facilitates development and sends a strong signal to local and foreign investors. As forest release becomes more efficient, Singaporean businesses and regional investors are likely to view Batam as a more attractive hub for expansion, bolstered by reduced red tape and centralized processing.
Sources: Republika (2025), Bentan.co.id (2025)
Keywords: Forest Land Release, BP Batam Authority, Investment Acceleration, Free Trade Zone, Prabowo Regulation
