Administrative Reform of Batam Indonesian Free Zone Authority (BIFZA) in Implementing Free Trade Zone (FTZ) in Batam City Indonesia

Abstract

This research based on administrative reform undertaken by Batam Indonesian Free Zone Authority (BIFZA). Administrative reform consist of structural aspects/institutional and human resource aspects. Administrative reform in the body of BIFZA implemented  because there was legalized for Batam as Free Trade Zone in 2009. Previously, the development of Batam conducted by an agency formed by the central government named Batam Industrial Development Authority (BIDA) and this was the one reason of BIDA did the administrative reform and changed the name to BIFZA. This research use qualitative research with descriptive approach, where the data are primary data and secondary data. The result of this research founded that BIFZA indeed has administrative reform in the body. Administrative reform in terms of structural/institutional consist of organizational structure, authority and procedure, that BIFZA has done a lot of changes. Organizational structure in BIDA’s was a simple organizational structure and administrative reform after the addition of an organizational structure that makes BIFZAs organizational structure to be more numerous and large. In terms of authority, after the administrative reform a lot of authorities delegated by central government to BIFZA, whereas in terms of procedures, all procedures of investment and foreign investment has been made ??online to support the implementation of Batam Single Window. In terms of human resources, which in this case can be divided into education, training and development of employees found that BIFZA did not conducted the education, training and development for employees. Furthermore the results of the administrative reform that have been carried out by BIFZA in terms of import and export, both cases have increased significantly.

Keywords: Administrative Reform, Free Trade Zone, Batam Indonesian Free Zone Authority