The Palm Scribe

Legal issue hinders Maloy special economic zone

Bisnis Indonesia, 19 October 2018

Development of the Maloy Batuta Trans Kalimantan Special Economic Zone (KEK MBTK), which was initially scheduled to begin operations in 2015, has been hampered by legal issues. President Joko Widodo has reminded both central and regional governments to prioritise on completing all the necessary documents and permits, including on land ownership and use, for KEK MBTK so as to maintain investors’ confidence in Indonesia. According to “Antara”, KEK MBTK was scheduled for inauguration this October.

KEK MBTK National Board Secretary Enoh Suharto Pranoto said the zone’s 508-hectare land has been cleared and has some basic infrastructure; however, it has yet to receive certificate from the Agrarian Affairs and Spatial Planning Ministry/National Land Agency (ATR/BPN). Furthermore, the Trade Ministry and the Investment Coordinating Board (BKPM) has yet to delegate an authority to manage the land to KEK MBTK Administrative Office. In addition, several facilities in the area such as electricity, wastewater system, and gate still need improvement.

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