The Analysis of Network Governance in The Investment Development of Free Trade Zone and Free Port (KPBPB) Batam

Abstract

Large amount of investment is one of income sources for a country. Recently, the investment in Indonesia has not been managed optimally due to, one among others, poor organization system of investment management. This study is aimed at analyzing the network governance within organization system in investment development at Free Trade Zone and Free Port Batam. The research methodology used was Coordination Network Analysis with 5 aspects of study; those are governance structure, service characteristics, operational interaction of partner characteristics, and network characteristic on 3 organizations at the level of province and regency/city. The result of the analysis indicates that coordination between provincial and regency/city organizations is not yet optimally conducted. Horizontal and vertical coordination are not yet optimally established.

Functional decentralization Construct in Decentralization Policy in Indonesia (A study of Irrigation, Education, and Free trade sectors)

“…This was reflected in results of a research by Muzawardi (Muzwardi, 2015). This was what the research referred to as CrossAgency's Partnership Characteristics in Investment Service Delivery which is involve collaboration among various stakeholders (Figure 1).…”

“…Batam which is a multi-function of multipurpose institution viewed from the prism of a local govern- Source : (Muzwardi, 2015) ment, must be forced to reduce its authority in line with initial functions that enshrined in its vision, missions, and goals at its inception. Such a step must be done because Batam city government duplicates more or less the same functions as BP.…”

“…Consequently, such a legal condition, has created coordination problems both vertically and horizontally (Muzwardi, 2015).…”