Batam Strengthens Construction Permit Supervision

Development of Nongsa Digital Park as part of Indonesia's Special Economic Zones

Batam is taking firm steps to strengthen the supervision of construction and investment project permits, signaling its commitment to legal certainty, transparency, and responsible development. The Batam Free Trade Zone Authority (BP Batam) has intensified inspections and enforcement to ensure all ongoing and future projects comply with Indonesia’s environmental and legal standards.

BP Batam recently suspended several projects found lacking complete documentation, emphasizing that all investors must meet permit requirements before construction begins.

“All investors must ensure that their documentation is complete before construction begins. If permits are incomplete, activities must be suspended until all requirements are met,” said BP Batam Head Amsakar Achmad, as quoted by TribunNews (Nov. 10, 2025).

Field inspections have been carried out across multiple sites. Among those temporarily halted were the Maranata Apartment in Seraya Atas, a housing project in Taman Raya, and a land preparation project in Bukit Vista.

“This is not a repressive measure, but an effort to ensure every project has a clear legal foundation in accordance with national regulations,” Amsakar clarified.

He referred to Indonesia’s key laws, including the Building Law (No. 28/2002) and the Job Creation Law (No. 11/2020), which require developers to obtain the Building Approval (PBG) and risk-based business licenses before starting construction.

“PBG is a fundamental document. There’s no reason to delay its processing,” he added.

BP Batam Deputy Head Li Claudia Chandra stressed that the authority’s stance aims to build professionalism and investor confidence rather than discourage business activity.

“We never intend to complicate the process, but every investor must comply with the rules. We want each investment to be productive, create jobs, and contribute to Batam’s economic growth,” she said, as cited from BP Batam’s official release (Nov. 5, 2025).

Earlier, BP Batam also welcomed an audience with PT Gunung Puntang Mas at the Marketing Centre Building on November 5, 2025. The meeting served as a dialogue between BP Batam and business actors to reinforce their shared commitment to transparent and equitable investment management. During the discussion, Deputy Head Li Claudia Chandra reaffirmed the importance of strict compliance with prevailing investment regulations.

Meanwhile, similar vigilance has been shown elsewhere. In Bali, the provincial government recently halted the glass elevator project at Kelingking Beach, Nusa Penida, after it failed to meet environmental and spatial planning requirements. The move, which followed public concerns over ecological impact, underscores the growing alignment among regional administrations toward sustainable and lawful development.

From Batam to Bali, Indonesia’s provincial governments are reinforcing permit monitoring and environmental oversight. These collective efforts highlight a broader national push to ensure that construction and investment projects are transparent, compliant, and beneficial to both communities and the environment.

 

Sources: BP Batam, TribunNews, Kompas

Photo Credit: via Shutterstock

 

 

 

 

 

 

 

 

 

 

 

 

 

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