Why Tanjungpinang Free Trade Zone (FTZ) Fail?

Kustiawan

Kustiawan Raja Ali Haji Maritime University, Tanjungpinang, Indonesia

Keywords: Free Trade Zone (FTZ), Policy, Implementation

Abstract

The goal of the study is to critically analyze the implementation the Free Trade Zone (FTZ) policy in Tanjungpinang of Riau Islands Region and to highlight the negative factors or obstacles encountered in the implementation of the policy in the Tanjungpinang. The study focuses on FTZ region in Bintan Island Indonesia, especially in the area of Senggarang and Dompak Region in accordance with Government Regulation No. 47 of 2007. The implementation of FTZ in Tanjungpinang has not shown encouraging as, there is no business or industry in those areas that have been set, especially Senggarang region. For data collection mixed methods have been utilized. Intensive literature review along with interviews is used to gather data. The findings of this study indicate that factors inhibiting the implementation of the FTZ policies in this area legal certainty in land ownership, overlapping FTZ Regulation, lack of infrastructure; roads, ports, limited supply of electricity, and limited water supply. Morever, the weak synergy between the Agency Concession Region Tanjungpinang and principals of some program activity, especially in matters relating to budget authority and the licensing process result in the lack of progress in FTZ implementation. On the basis of these findings recommendations for policy makers and government representatives are given.

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