Effectiveness of Monitoring the Entry and Exit of Motor Vehicles to and from the Batam Free Trade Area and Free Port

Luthfi Zulauliady, Widayati Widayati

Abstract


Smuggling of goods not only harms the state finances but also violates the social and economic rights of the community. To safeguard state finances and the economy in society, strict regulations are necessary to create a deterrent effect against perpetrators of smuggling who have clearly damaged the state finances. The research problems aim to: 1. Identify and analyze the effectiveness of the Government Regulation on the Batam Free Trade Zone and Free Port (KPBPB); 2. Identify and analyze the supervision of the entry and exit of motor vehicles to and from the Free Trade Zone and Free Port in the Batam Free Trade Zone and Free Port. This research uses an empirical juridical approach with descriptive-analytical methods, collecting primary data through interviews and secondary data via library studies. The data is analyzed qualitatively using logical and systematic methods. Research problems are analyzed using theories of legal certainty, legal effectiveness, and trade facilitation. Based on the research results, it can be concluded that: (1) KPBPB aims to enhance economic competitiveness and investment, but its implementation is hindered by, among others, complex regulations. The solution is regulatory revision through service acceleration. Presidential Regulation no. 1 of 2024 serves as the main guideline for KPBPB development. Supervision of motor vehicles in the FTZ at Batam KPBPB is crucial for free trade zone policies to boost competitiveness and investment. Green-plated vehicles with FTZ stamps may only operate within the zone and must pay taxes upon exit, supervised by KPPBC through preventive-repressive approaches and inter-agency cooperation. Main challenges include complex regulations, limited human resources/facilities, low legal awareness, and violations such as cigarette/alcohol smuggling that harm the state.


Keywords


Free Trade And Free Ports; Import And Export Of Motor Vehicles; Supervision.

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References


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DOI: https://dx.doi.org/10.30659/rlj.4.4.4722-4741

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