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2169

DISHARMONIZATION IN MANAGING GOVERNMENT AFFAIRS IN

BATAM CITY, RIAU ISLANDS PROVINCE

Anton Permana

, Djohermansyah Djohan, Ika Sartika, Sampara Lukman

School of Postgraduate, Institute of Home Affairs Governance, South Jakarta, DKI Jakarta, Indonesia

antonpermana2021@gmail.com

ARTICLE INFO

ABSTRACT

Published: December 30

2022

This study aims to find out and explain how the dualism of government

affairs management occurs in Batam City, Riau Islands Province and the

efforts of the Central Government in overcoming this dualism of authority,

as well as formulating an ideal model for managing government affairs in

Batam City, Riau Islands Province. This study used a qualitative approach

with a descriptive type and in the form of field research (field research).

Using management theories in government as well as several other

supporting theories in explaining the picture of dualism and overlaps that

occur in the management of government affairs in Batam City. The fact that

the main problem in government management in Batam City is the

occurrence of disputes in terms of authority between the City Government

and the Batam Concession Agency such as HPL (Land Management Rights),

taxation, licensing, management of state vital assets, tourism and staffing;

The efforts of the Central Government in dealing with this problem is to

issue Government Regulation Number 62 of 2019 which states that the

Mayor of Batam becomes the ex-officio Head of BP Batam with the aim of

eliminating disputes over authority that have occurred, but in its journey

there are still authorities which are in principle the same but still carried

out and issued by the Batam City Government and the Batam Concession

Agency. The model produced in this study is the TDM Special Autonomy

model, namely Totality, Decentralization, and Monetization as a frame of

reference in implementing special autonomy.

Keywords: dualism, government

affairs, Batam City Government

This work is licensed under CC

BY-SA 4.0

INTRODUCTION

Realizing a prosperous society is one of the common goals in statehood. Rasyid (2000)

explains that the Government is not held to serve itself, but to serve the community, creating

conditions that allow each member of society to develop his abilities and creativity in order to

achieve common progress. Rasyid's (2000) view emphasizes that welfare, which is a common goal

in statehood, must be pursued in such a way by the Government as a form of government

responsibility to provide services to the community. The government should not focus solely on

self-serving and overriding the provision of services to the community.

One of the strategies carried out by the government to improve people's welfare is to improve

the national economy. With the increase in the national economy, it is expected that people's

income will increase (Hayati et al., 2021; Londa, 2017). With the increase in income, the

community is more prosperous because it is able to meet its basic needs independently (Ras, 2013;

Sumarto & Dwiantara, 2019). In this regard, the Government has established various policies to

improve the national economy, both implemented domestically and foreign policies.

On the other hand, the economy also has an important position in statehood because the

economy can influence structural and institutional transformations related to the overall political,

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cultural and economic processes (Todaro & Smith, 2020). With strong economic conditions, the

country will be stronger (Kader, 2018). On the other hand, when the economy begins to weaken,

it will pose a threat to the life of the nation and state (Romarina, 2016).

One of the strategic steps taken by the Government to improve national commerce is the

establishment of Presidential Decree Number 74 of 1971 concerning the Development of Batam

Island Development. Batam, which is geographically located in a very strategic position (because

it faces the Malacca Strait and the Singapore Strait which are the most populous international

shipping and trade routes in the world) is expected to be able to boost the national economy. In

addition, Presidential Decree No. 74 of 1971 is also an entry point to take advantage of the

economy and even compete with Singapore. Because at that time the electronics industry in

Singapore was developing very rapidly while the land area and labor owned by Singapore were

very limited (Damuri et al., 2015), so it was hoped that with the establishment and development

of the Batam Island Industry, it could take advantage and even compete for the progress of

Singapore.

In Batam and Bintan, there is a mutual attraction of authority in terms of the implementation

of government affairs that have the potential to generate income. An example is the provision of

licensing services, taxes, and so on. In addition, in Bintan Regency there is an exclusive Lagoi

tourist area where the Bintan Regency Government has almost no authority in terms of supervision

so that the effectiveness of services cannot be realized.

Unlike Batam and Bintan, there is a horizontal conflict between Karimun Regency and the

Karimun Free Trade Area and Free Port Management Agency due to the unclear boundaries of the

Free Trade Area and Free Port because it is located on one island in Karimun Regency. In addition,

there was also a weakening of control over the administration of government affairs carried out by

the Karimun Free Trade Area and Free Port Management Agency because the Regional Council

was directly held by the Governor without the involvement of the Karimun regional government.

This also causes the karimun regency government to feel neglected in its own area.

The same problem also occurs at the Riau Islands Province level. Although the governor as

the regional council does not have full authority in following up on every problem because he has

to wait for instructions from the Central Government so that the handling of the problem becomes

very slow, moreover the high sectoral ego and political proximity between the Central Government

and the Free Trade Area and Free Port Management Agency.

The horizontal and vertical conflicts that occurred between the Regional Governments (Riau

Islands Province, Batam City, Bintan Regency, Tanjung Pinang City and Karimun Regency) and

the Free Trade and Free Port Area Business Agency (Batam, Bintan and Karimun) greatly

disrupted the investment climate in free trade areas and free ports. Loss income occurs even greater

due to prolonged conflicts. The rampant granting of permits and conflicts of authority have made

investors not feel at home to increase their investment. If this is not followed up immediately, it is

not impossible for Riau Islands Province to be further left behind by other regions. As proof that

based on Bank Indonesia data in 2017, the economic growth of Riau Islands Province was only

2%, which is the worst and lowest in history in the Sumatra region.

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Based on this description, researchers are interested in conducting research related to the

good government management model to be applied in the Riau Islands Province. This is related to

the various specificities of the Riau Islands Province when compared to other provinces in

Indonesia. Besides, the researcher decided to choose the topic since it is barely discussed and the

closest might be one from Arianto et al. (2022) which states that policies overlapping indeed can

trigger conflict. Hence, the research would like to surface a system model to solve this issue.

METHOD

The research design used in this study is qualitative. The qualitative design was chosen by the

researcher because the problem to be studied is still unclear, very complex, and requires a deep

understanding. This research was conducted in the Riau Islands Province. Meanwhile, the time for

the implementation of research activities began in October 2019 until March 2021. As for the data

source that the researcher uses, it is listed in the following table.

Table 1. Research Data Sources

Required Data

Data Sources

Primary

Secondary

Interviews through informants of relevant officials and academics,

practitioners

Yes

The group of legal regulations that are still in force

Yes

Literacy and references related to the theory are used

Yes

Studies from previous research

Yes

Information and news roundups, academic seminars

Yes

Source: Processed by the Researcher

As implied in the previous table, researchers collected data through interviews and

documentation from various media. As for data analysis, researchers apply triangulation

techniques and interactive model data analysis techniques.

RESULT AND DISCUSSION

Central Government Efforts in Overcoming Disputes over Management of Government

Affairs in Batam City, Riau Islands Province

The problem of disputes over the management of government affairs which led to the

overlapping of authority in Batam City began to show a settlement point after the issuance of

Presidential Decree No. 8 of 2016 concerning the Batam PBPB Area Council as the government's

commitment to solving Batam problems, and also the plan to change the status from a free trade

zone to a special economic zone.

According to the results of interviews with speakers, the conflict of authority that occurred

in Batam City between the Batam Entrepreneurial Agency and the Batam City Government was

caused by one of them being the absence of rules that technically regulate the working relationship

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between the Batam City Government and BP Batam. Stakeholders in Batam City believe that this

conflict of authority can be resolved by the discretion between the heads of these institutions, but

in reality conflicts of interest between these two institutions cannot be avoided. So it needs an

innovation and a solution that is able to stop disputes in authority that occur in Batam City. This

is the need for government policy in terms of law and order or the function of regulation, it is

carried out to achieve common goals and prevent conflicts between the Batam City Government

and the Batam Entrepreneurs Agency, the central government must carry out discipline or act as a

stabilizer, then by making policies on the welfare state system which prioritizes the community

with education that meets the provisions and income of the community above UMR (Regional

Minimum Salary). A well-run policy process is needed from the preparation of agendas, policy

formulation and legitimacy, policy implementation, evaluation of policy implementation,

performance and impact of new policies and policies.

Related to the above problems, it can be straightened out based on information from experts,

one of which comes from Dr. Razaki Persada, M.Si (Dean of FISIP Universitas Raja Ali Haji Tj

Pinang), who explained that: "Government affairs for public services are left to the Batam City

Government. Government matters but those related to investment are handed over to BP Batam.

BP Batam is continued to be managed by professionals from the Riau Islands and is independent

of certain interests both at the center and in the regions. Furthermore, there must be a derivative

Regulation to not continue the Regulation on it".

If this is allowed to drag on, then public services will have a bad impact. For example, if

there are potential investors who still have difficulty managing licensing and find it difficult to get

related data and are not solutive. This is important because policy decisions must go through

mechanisms that have been regulated and moreover involve the public when in the preparation

process. Previously, the role of public policy analysts was involved, which was still very rare, so

it was not clear what the BNSP Qualification Standards were and were not fostered by AAKI.

Based on this, Dr. Razaki Persada, M.Si also emphasized that: "BP Batam and the Batam City

Government are strengthened by each maisng according to their respective authorities. For Batam

it is okay, for the Province it is still very bad. Therefore, the Regional Council should not be filled

by the Centre but should also be a regional academic who has a good track record and has

integrity."

In resolving disputes in authority/power between the Batam City Government and the Batam

Entrepreneurs Agency can be accommodated, the State must resolve conflicts with a structural

approach, namely by structural reorganization. According to Wijono, structural reorganization can

be used to anticipate the occurrence of organizational conflicts, namely by means of an approach

that can change the system to see the possibility of structural reorganization, to straighten out the

differences in interests and goals to be achieved by both parties, such as forming a new forum in

non-formal organizations to overcome conflicts that are protracted as a result of interdependence

of tasks in achieving interests and goals. which is different so that the functions of the organization

become blurred. The central government can carry out structural reorganization in the city of

Batam in a continuous manner, by making Batam a city with special autonomy considering the

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existence of the city of Batam as an Industrial city, the flow of goods and passenger traffic, and

located in the Exclusive Economic Zone (EEZ).

Through Presidential Decree Number 41 of 1973, Batam was specially built by an agency

called the Batam Authority or the Batam Island Industrial Development Authority. Then, the name

of this authority was changed to the Batam Entrepreneurial Agency (BP). To accelerate the

development of Batam, the government established the Batam, Bintan, and Karimun Free Trade

Zones (FTZ) which refers to Law Number 36 of 2000 concerning Free Trade Areas and Free Ports

(PBPB). Then presidential decree Number 8 of 2016 was issued concerning the Batam PBPB

Regional Council on February 29, 2016. Not satisfied with the FTZ, the government planned the

establishment of the Batam Special Economic Zone (SEZ). Initially, Batam was initiated to defeat

or at least offset Singapore as an integrated industrial area. All infrastructure including airports,

highways, and highways was built to attract investors. However, in its development, Batam

remains far behind Singapore, even existing investors have left for other regions.

Batam also lags behind other cities in countries in the East Asia and Southeast Asia regions.

For example, the Iskandar Regional Development Authority in Malaysia which was established in

late 2006. Then, it is the special economic zone in Shenzhen that has already contributed to China.

In 2016, as much as 75% of Shenzen region's revenue of US$ 114.5 billion was contributed by the

Shenzhen special economic zone.

From the results of the research, it was concluded that several policy alternatives that can be

applied in Batam, including Batam being maintained as the center of industrial estates,

implementing the Free Trade Zone (FTZ) policy in Batam, implementing the Special Economic

Zone (SEZ) policy in Batam, making Batam a Tourism City, and implementing special autonomy

in Batam. There is also the desire of some people to restore Batam's policies as in the 1970-1990s,

managed by the Batam Authority (Batam City Government was disbanded) and there is a desire

of some people to implement full autonomy by the Batam City Government like other regions in

Indonesia (BP Batam was disbanded).

The dispute still occurs between the Batam City Government and BP Batam which is still

unfinished, finally President Jokowi tried to resolve the dispute that occurred in the management

of Batam Island as a Free Trade and Free Port area. Jokowi has signed Government Regulation

(PP) Number 62 of 2019 concerning the Second Amendment to Government Regulation Number

46 of 2007 concerning the Batam Free Trade Area and Free Port.

Based on some information that has been successfully summarized, two years after the

enactment of Presidential Decree No. 8 of 2016, the Central Government in a Limited Cabinet

Meeting at the Palace on December 12, 2018 took several important decisions on disputes that

occurred in Batam City. There are four decisions set by the government:

1) BP Batam was not disbanded;

2) The position of Head of BP Batam, held ex-officio by the Mayor of Batam;

3) The management of the Batam Free Trade and Free Port Area (KPBPB) is still carried

out by BP Batam, which is led ex-officio by the Mayor of Batam; and

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4) Rules or regulations are being prepared that will regulate the implementation of the

concurrent position of the Head of BP Batam ex-officio by the Mayor of Batam.

Following up on this decision, the Government issued PP No. 62 of 2019 concerning the

second amendment to PP No. 46 of 2007 concerning Free Trade Areas and Free Ports (KPBPB)

established by President Joko Widodo on September 11, 2019 and promulgated in Jakarta on

September 17, 2019 by the Minister of Law and Human Rights, Yasonna H. Laoly. The PP

mandates the restructuring of the BP Batam organization. One point among them is the

determination of the Mayor of Batam as ex officio Head of BP Batam.

Ten days after the enactment of PP No. 62 of 2019, Coordinating Minister for Economic

Affairs Darmin Nasution as Chairman of the Batam Free Trade and Free Port Area Council

(KPBPB) appointed Batam Mayor Muhammad Rudi as Head of BP Batam, on September 27,

2019. Since then the dualism of authority in Batam City began to be resolved.

With the PP, the Batam Free Trade Area and Free Port Business Agency (BP Batam) will be

led by the mayor or concurrently serving as the head of government as well as the head of BP

Batam. Previously, BP Batam was led by a special official, previously held by Edy Putra Irawady,

who was a central government official who had led BP Batam since early 2019. So on September

29, 2019 the Head of the Batam Entrepreneurial Agency was held ex-officio by the Mayor of

Batam, namely Muhammad Rudi, who was officially inaugurated by the Coordinating Minister

for Economic Affairs. The regulation also implements the streamlining of SOTK, where there used

to be five deputies, it is now reduced to four deputies which in principle aims at efficiency and in

principle for sharpening the function of licensing services.

According to the observations of researchers in the field, there are still several types of

licensing that are in principle the same but are carried out by two different agencies, but researchers

get another perspective with the enactment of this regulation, namely there is a division of work

areas according to the size, volume and workload which will affect the focus and success of

agencies that precisely provide services and permits so that they become more effective and

efficient. The main cause of the lack of attraction to Batam, FTZ, and SEZ in Indonesia is the lack

of legal certainty due to management disputes. Various permits, ranging from IMB to business

licenses. The enactment of two regulations in Batam city, decentralization law and port law and

free trade makes the dualism of power between Batam city and BP Batam a conflict of interest in

Batam City. Efforts to maintain authority with one another have an impact on public services in

Batam City, especially the community and investment space.

One of the strategic decisions made by the Mayor of Batam concurrently as the head of BP

Batam is to build an effective and efficient public service, where previously Batam had tried to

implement one-stop integrated services (PTSP) located in the Sumatra Expo Batam Center

Building. This is done to provide a forum for the community and entrepreneurs in managing

licensing issues issued by BP Batam and the Batam City Government through a one-stop

mechanism. The implementation of PTSP is based on the decree of the Mayor of Batam No.

KPTS.315/HK/IX/2001 concerning the establishment of a Business Licensing Service Center

(One Stop Service).

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PTSP has accommodated all types of agreements in its work units, this is done as an effort

to overcome the overlap that occurs in the city of Batam and also as an effort to realize good

governance in carrying out licensing in Batam City, but in the process of implementing PTSP does

not go well. There are many problems that occur related to PTSP where there are often illegal

collections carried out by PTSP in managing investment permits in the city of Batam. So it can be

said that the implementation of PTSP cannot be a solution to solve overlapping public services and

healthy investment problems in Batam City. In its journey, PTSP has not been able to run well as

what has been planned since the beginning of its creation, especially in the investment licensing

process. Investors continue to license in BP Batam and in the Batam City Government. This is not

an effective solution in reorganizing the authority structure, because regulations related to the

Batam Entrepreneurs Agency and the Batam City Government still overlap. The need for concrete

solutions for the reorganization of the authority structure in Batam City that bridges invests and

economic interests in accordance with the mandate of the 1945 Constitution to realize local

government to support the implementation of democracy in the regions and in Indonesia in creating

people's welfare.

In its journey, the Batam City Government finally made a new system that was better than

the old system, namely by making the Batam Public Service Mall as a new step taken to reduce

the dualism, the public service mall provided 413 licensing and non-licensing services for the

entire community and investment. Through the Batam Public service mall, permit management is

expected to be easier and faster, not a matter of months or days the licensing process is now

completed in a matter of hours. Batam Public Service Mall which unites the management of

hundreds of permits under one roof and many agencies are involved in its implementation. MPP

is facilitated to improve and facilitate licensing services for the community in an integrative

manner so that the community is no longer bothered by a long bureaucracy and takes a long time

which has been considered convoluted.

In practice, the Public Service Mall has adopted Azerbaijan's Public Service Hall (PSH),

namely "Asan Xidmet", where all agencies from the Batam City Government and BP Batam which

in principle carry out services and permits are all carried out in one room besides that MPP Batam

also implements transactions in a non-cash way, so that licensing has been truly transparent, this

has also received full support by banks, so that the public can find it easy to get things related to

licensing so that it has an impact on increasing public trust in the government (public trust) and

the progress of Batam City in the Riau Islands Province. That way it avoids the occurrence of

illegal levies that have been happening in Batam. The government's efforts to improve and improve

public services including licensing have proven to have reaped results with the rise in the ranking

of ease of doing business by the World Bank. Indonesia's ranking in Ease of Doing Busness

(EoDB) has leveled up in 2018 to 72

from 91

in 2017. Indonesia managed to pass China which

was ranked 78

In improving public services, Batam became one of the pilot projects for the implementation

of public service malls in 2017 (Suryadi et al., 2022). The other four cities are DKI Jakarta,

Surabaya, Denpasar, and Banyuwangi. After success in five cities, the government continued to

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implement public service malls in other cities throughout Indonesia. Public service malls are

expected to provide convenience for every community and investor in doing business in the

country, improve the quality of public services as a whole and achieve a level of effectiveness and

efficiency in the implementation of public service standards (Ristiani, 2020).

The presence and implementation of public service mall is in accordance with the ideals of

government in accordance with the mandate of the law in realizing good governance (Klijn &

Koppenjan, 2015). MPP also makes it easier for entrepreneurs, not just the public. However, the

application of MPP is more about improving public services "one stop service" only as a solution

to integrated services that were not previously integrated between central and regional services as

well as business services in one place. Thus, MPP cannot be said to be a solution in resolving

authority disputes that occur between BP Batam and the Batam City government because the

authority still exists in the two agencies. In order to create good public services, a deeper review

of the laws related to the decentralization law between the Batam City Government and BP Batam

is needed, as well as reaffirming which is stronger in its authority based on applicable law, with

strong clarity in the division of authority legally, the MPP will be better and see again the

effectiveness of its existence in real terms.

The researcher argues that this regulation succeeds in eliminating miscommunication and

conflict of interest that occurs between the two heads of Batam Island management institutions,

but there is still evidence that the authority is in principle the same but is still implemented by the

two institutions as explained in the results of the discussion and research.

Special Autonomy Model in The Management of Government Affairs in Batam City, Riau

Islands Province

Description of the Problem Situation regarding Disputes over the Management of Government

Affairs in Batam City, Riau Islands Province

There are disputes in the management of government affairs in the Riau Islands Province,

precisely in Batam City, inseparable from the historical series of the formation of Batam as an

acceleration and acceleration area in the development of the Port Area and Free Trade Zone as

well as economic-business and industrial centers so that based on existing regulations, a special

agency that manages Batam known as the Batam Authority Agency was formed which later

changed to Batam Entrepreneurial Agency (BP Batam) which is the overall manager of Batam.

There is often a euphoria of regional autonomy, so there is a clash of clashes in regional

autonomy when Batam also gets its portion as one of the New Autonomous Regions (DOB) as a

result of regional expansion along with other regions in Indonesia in the form of Regencies and

Cities. The euphoria of regional autonomy continues to target many things, including in terms of

management authorities that have been in BP Batam becoming ambiguous and biased with the

authority of the Regional Government which is accommodated by the Regional Government Law

Number 23 of 2014 concerning Regional Government in terms of government affairs.

In serious situations and conditions, based on the historical series of the formation of Batam

as a Port Area and free trade zone carried out by BOB (now BP Batam), Human Resources (HR)

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come from selected and qualified people in line with their duties, namely to shorten the range of

control and break the chain of various permits and coordination from the center. Therefore, BP

Batam is a comprehensive representation of the central organs present in Batam so that related

parties no longer need to carry out tiered affairs up to the central government.

The presence of autonomous regions supported by regional autonomy laws starting from

Law Number 22 of 1999 concerning Regional Government gave rise to a dispute over authority in

Batam City between the Batam City Government and the Batam Entrepreneurial Agency. From

the various authorities and authorities of existing affairs, after the formation of the Batam City

Government (City Government), there were various overlapping authorities that caused problems

both in terms of taxation, permits, land so that in making development plans there were many

distortions between BP Batam and the Batam City Government.

In addition, there are also other problems such as the management of national vital assets

consisting of national assets related to industrial areas such as ports, airports and national assets

related to socio-religious activities such as mosques in hajj dormitories also need to be seated in

an agreement so that they do not overlap. According to the results of field research and also based

on studies, there are several relationships until now there are still several government affairs that

intersect between the Batam City Government and the Batam Entrepreneurial Agency

In addition to Batam City, disputes over the management of government affairs also occur

in other areas of Riau Province such as Bintan Regency, Tanjung Pinang City, and Karimun

Regency. Since the enactment of Government Regulation Number 47 of 2007 concerning the

Bintan Free Trade Area and Free Port, part of the Bintan Regency and part of Tanjung Pinang City

area have become part of the development of the Free Trade Area and free port. In its development,

the hope of economic growth and development in Riau Islands Province was not achieved. On the

contrary, it causes various new problems, especially those in the Batam City Government, Bintan

Regency Government, Tanjung Pinang City Government and Karimun Regency Government.

The existence of a legal basis that both have the power of the Act in both bodies makes the

emergence of sectoral egos in both. On the one hand, the Batam City Government feels as the

"host" so that it is he who has the right to regulate everything in his area based on the Regional

Autonomy Law. However, on the other hand, the Batam Entrepreneurial Agency feels that it also

has rights because in Law Number 44 of 2007 concerning Free Trade Areas and Free Ports, it

authorizes him to carry out applicable provisions and rules, especially those related to free areas

and ports, including the island of Batam. The existence of Law No. 44 of 2007 is considered to

clash with Law Number 25 of 2007 concerning Investment and Law Number 32 of 2004 and Law

Number 23 of 2014 concerning Regional Government.

Thus, the Batam City Government and the Batam Entrepreneurial Agency both have a strong

legal basis, namely the Law. This strong legal basis is what causes a regulatory clash between the

Batam city government and the Batam Entrepreneurs Agency. Batam's management policy has

also become disharmonious. Thus, the central government needs to make efforts to resolve the

conflict of authority that occurs between the two Batam City management agencies because the

dispute over authority between the Batam Entrepreneurial Agency and the Batam City

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Government is also a result of the indecisiveness of regulations governing the relationship between

agencies in the regions and the relationship between the central and regional governments.

Construction of the Concept and Model of Special Autonomy/SPECIAL AUTONOMY-

TDM (Totality-Centralization-Monetization) in the Management of Government Affairs in

the City of Riau Islands Province

Based on the situation and conditions that occur, the researcher proposes a concept (idea/

idea) called "Totality, Decentralization, and Monetization" (TDM). The reasons and basis for the

conception of TDM are of course also related to real conditions, namely the existence of disputes

in the management of government affairs in the Riau Islands Province (Batam City) with the phrase

"Bhinnêka Tunggal Ika (BTI) which means "Different one is also that, and Tan-hana Dharma

Mangrwa (TDM)" which means "because there is no ambiguous truth".

Figure 1. Special Autonomy Totality-Decentralization-Monetization (OTSUS-TDM) Model

Source: Research Processing Results

1) Totality: As previously explained, that before the birth of the Batam City Government,

Batam was formed based on a Presidential Decree in the New Order era in the form of the

Batam Authority Agency which was initiated by BJ Habibie as the first Chairman of the

Batam Authority Agency until Sri Soedarsono in total made Batam an economic

locomotive with very extraordinary results, reaching 42% or the highest national economic

growth ever achieved by the Indonesian government in the development of new industrial

areas. This makes many countries in Southeast Asia and other Asian regions learn a lot to

Batam City. However, after the emergence of the New Autonomous Region where the

Batam City Government was the driving force, it made the management and administration

of government in the regions become like half-hearted (not total) because there were

disputes in the management of government affairs and overlapping rights and authorities

to regulate various services and permits in the regions. Therefore, the principle of Totality

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in the form of Special Autonomy at the Riau Islands Province level, so that various

problems of overlapping various authorities can be resolved not only in the city of Batam

but in all regions in the Riau Islands Province as a whole.

2) Decentralization: The decentralization referred to in this model is Asymmetric

Decentralization because in practice in Indonesia there are already 4 provinces that have

implemented Asymmetric Decentralization, namely the Aceh Special Region, DKI Jakarta,

Yoyakarta Special Region and Papua Special Autonomy. However, there is certainly a

difference between the Asymmetric Decentralization of Special Autonomy for the Riau

Islands Province and the areas mentioned above due to its geopolitical and historical

privileges, while the Special Autonomy of the Riau Islands Province is based on

geographical and economic conditions and this is certainly the first time in Indonesia. This

is also related to the aspect of Totality as mentioned before, where we can also learn from

Michael Porter's theory which says that when resources are limited then we must focus and

total all the potential we have.

3) Monetization: As for what is meant by monetization in this model, more specifically

monetizing locomotives. In general, the term monetization is a way to turn something into

an income, namely money. The monetization in this model is specifically Monetizing

locomotive, which is to restore the spririt and ideals of the formation of Batam, namely

making Batam a locomotive of national economic growth, especially with Batam and Riau

Islands Province as a whole including Natuna has natural wealth in the form of very

fantastic oil and gas reserves, Alki I, as well as various other tourism potentials, of course

it is a very money-making combination potential for Indonesia's economic growth

nationally.

The real implementation of the TDM model is, in terms of Totality, which so far the division

of authority between the Batam City Government and BP Batam is still half-heartedly becoming

total. The Batam City Government still has the authority as other autonomous regions in Indonesia,

while BP Batam's position is pulled under the Governor of Special Autonomy by emphasizing its

main duties and functions which only supervise ports, airports, and various other national assets

related to investment and industry. In relation to the Free Trade Zone (FTZ) which has been the

authority of BP Batam, with the special autonomy of the Riau Islands Province, researchers are of

the view that FTZ and SEZ will each be able to run on track and even be interrelated with each

other where researchers offer FTZ with an enclave area or bonded area which will be correlated

with the SEZ so that the conflict of authority between BP Batam and the Batam City Government

can be avoided.

Outside the indusry area or FTZ enclave with the Port and airport system that has been

managed by BP Batam, then in addition to that it is the authority of the Batam City Government.

Meanwhile, Decentralization in the TDM model is special autonomy as a form of asymmetric

decentralization which if this decentralization model is implemented will actually strengthen

regional autonomy itself. The monetization referred to in this model is that Batam will stretch

again, production opportunities for the domestic market will be wide open (not only exports) and

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with the FTZ correlated with the SEZ will cause more incentives, and will be a stimulant for

investors to invest in Indonesia.

The arrangement of the management of government affairs in Batam City is very important

and urgent considering that Indonesia is one of the countries that become the Silk Road route where

this route is a series of distribution routes and cultural interactions throughout the Asian region.

Based on the concept of the TDM model above, this is explicitly a proposal to the Central

Government in granting total power based on Asymmetric Decentralization from the Economic

and Geographical aspects, precisely strengthening regional autonomy by making Riau Islands

Province a "Special Autonomy of Riau Islands Province", where BP Batam remains, but is under

the control of the Governor of Special Autonomy of Riau Islands whose duties and authorities are

regulated in the Autonomy Law specifically and furthermore, the Central Government needs to

issue a Government Regulation on the revocation of authority over BP Batam, including

harmonizing the authority between BP Batam and the City Government, where in the end BP

Batam only acts technically on the authority over industrial estates, main infrastructure, ports and

airports, besides that it is the full authority of the Batam City Government.

CONCLUSION

The results of the study showed the fact that the main problem in government management

in Batam City is the occurrence of disputes in the management of government management to the

point of overlapping authority between the Batam City Government and the Batam Entrepreneurial

Agency is due to the existence of the two institutions supported by different legal structures and

substances that cause management policies in the land sector. Spatial planning and licensing

became disharmonious. In addition, staffing problems such as weak synergy between institutions,

legal uncertainty, the occurrence of Batam's economic slowdown, the emergence of several social

problems in Batam, as well as the decline in Batam's economic competitiveness.

The Central Government's efforts in dealing with the aforementioned problems are to issue

Government Regulation Number 62 of 2019 concerning the Second Amendment to Government

Regulation Number 46 of 2007 concerning FTZ and Batam Free Port which contains that the

Mayor of Batam became the ex-officio Head of BP Batam with the aim of eliminating authority

disputes that occurred, but in his journey there is still authority that is in principle the same but is

still being carried out and issued by the Batam City Government and the Batam Entrepreneurial

Agency of Riau Islands Province.

A new ideal model that can be constructed from the results of the analysis of problems related

to disputes in the management of government affairs in Batam City, Riau Province is the Special

Autonomy / OTSUS-TDM model, namely Special Autonomy with the principles of Totality,

Decentralization (asymmetry), and Monetization.

The Batam City Government and BP Batam should further increase the intensity of

communication and improve coordination and efforts to eliminate conflicts of interest between

two stakeholder institutions so as to be able to bring progress in the development of the city of

Batam City in particular and in the Riau Islands Province in general.

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With the issuance of Government Regulation Number 62 of 2019 as an effort by the Central

Government to eliminate disputes and overlapping authorities have not been able to resolve

problems comprehensively due to the existence of authority which is in principle the same but is

still carried out and issued by the Batam City Government and the Batam Entrepreneurial Agency,

the recommendations in the context of resolving disputes are more explicit and congretionary, this

study proposes to establish special autonomy at the Riau Islands Province level through the Law

as a form of geographically and economically based asymmetric decentralization that is the first

in Indonesia; BP Batam was disbanded and made into a state-owned enterprise (Provincial Level)

in order to do business in total. SOEs in this case are SOEs at the Provincial level such as KBN

(National Bonded Area) in DKI Jakarta Province; BP Batam is used as a pure "Executor" in the

form of Provincial SOEs in order to be total in doing business with investors. Meanwhile, the

Batam City Government in this case remains the "Regulator"; In relation to the permits that must

be issued by BP Batam which are converted into SOEs, this can be stated in the Presidential

Regulation on the Appointment of the Governor of Riau Islands Province as Special Governor

whose authority is expanded including in the issuance of permits within the working area of

Provincial SOEs.

The conceptual model of OTSUS-TDM Special Autonomy, namely Totality,

Decentralization, and Monetization, which is the result of academic theoretical constructs as a

frame of reference in the application of special autonomy in Riau Kepualauan Province, is

considered very appropriate and in accordance with real conditions in the field. Therefore, future

research are expected to study the model, along with its component, further to conduct a more

optimal implementation.

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