Singaporean Entrepreneur Reports to Kadin on BP Batam's Land Destruction of the Businesses

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November 16, 2024 | 08:40 pm

TEMPO.CO, Batam - Several business owners reported land issues with Badan Pengusahaan Batam or BP Batam to the Batam Chamber of Commerce and Industry (Kadin) on Friday afternoon, November 15, 2024. Among the entrepreneurs were a Singaporean Kevin Koh of PT Metal Werk Sagulung and Rury Afriansyah, the owner of Hotel Pura Jaya Nongsa under PT Dani Tasha Lestari (DTL). They recounted the chronology of the land issues that led to the demolition of their businesses in the Sagulung area of Batam by BP Batam.

Each case was almost the same as the businesses claimed that BP Batam had taken their land for various reasons. In addition, BP Batam's destruction of their buildings was a loss to the business owners.

Kevin Koh explained that BP Batam allocated 2 hectares of land in the Sagulung area for his company. He was the pioneer who established the PT Metal Werk company. Kevin had applied for an extension two years before the end of the allocation period, but he said that BP Batam gave the land to another company. "The central government regulations are good, but the people in power in Batam are arbitrary towards entrepreneurs," he said.

The legal representative of PT Metal Werk, Eko Nurisman, said his client had suffered losses of up to Rp 50 billion as a result of the land transfer and demolition of the company's building. "My client has reported to the police without any response; so far he has not received his rights. However, my client will continue to report the parties involved in this demolition to higher authorities. In addition, I will file complaints regarding my client's land; we are currently preparing the necessary documents," Eko said.

Eko, who also represents the legal interests of Hotel Pura Jaya, continued that a similar case occurred at Pura Jaya. The land was transferred to another company and then the hotel building was demolished without a court order. "When policies are made based on personal preferences rather than the law, there is also a ministerial regulation above the law; it's ridiculous. In my opinion, the law should take precedence over ministerial regulations," said Rury Afriansyah, the owner of Pura Jaya Hotel, after meeting with Kadin.

The chairman of Kadin Batam, Jadi Rajaguguk, received reports from two entrepreneurs who are also members of Kadin Batam. "Kevin Koh is a Singaporean businessman who has been in Batam for a long time; this is indeed a land dispute," said Jadi.

Kadin will visit BP Batam to inquire about the two land issues involving PT Metal Werk and Pura Jaya Hotel. "Not only these but several other land cases have been reported to Kadin, including issues of overlapping among contractors; we demand that BP Batam, as the administrator, be accountable," Jadi remarked.

If BP Batam fails to resolve the issues, Jadi mentioned that Kadin will report these land issues to the BP Batam Regional Council, specifically to Susiwijono Moegiarso. "We are looking for solutions to this matter; it should not take too long as it could have a negative impact on foreign investment in Batam," said the Kadin chief.

According to Jadi, the repercussions of these arbitrary actions could lead to negative publicity due to the lack of legal certainty for investment in Batam. "This is very detrimental, although Prabowo had mentioned 8 percent economic growth, but in situations like this, entrepreneurs need legal certainty," he said. "And we hope there will be a review of business policies in Batam, including those of BP Batam," Jadi added.

The Kadin chief also noted that there had been no development on the land taken by BP Batam and handed over to other companies, so far. "During BP Batam's FGD on the land issue the other day, I asked for the names of the companies that were recently allocated land to ensure transparency," Jadi said.

When contacted via WhatsApp, BP Batam's head of public relations, Ariastuty Sirait, said she would first look into Kevin's complaint with the relevant department. "I will coordinate with the relevant department," Tuty said on Saturday, November 16, 2024.

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