Ardiansyah, Boy (2024) Analisis Penerapan Peraturan Pemerintah Nomor 62 Tahun 2019 Tentang Kawasan Perdagangan Bebas Di Batam: Dampaknya Terhadap Bisnis Lokal. Masters thesis, Universitas Islam Riau.

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Abstract

Government Regulation Number 62 of 2019 concerning Free Trade Areas and Free Ports is implemented to encourage investment and international trade activities in Batam City. This policy provides various incentives, such as tax exemptions and ease of licensing, to create a competitive and attractive business environment for investors. However, its implementation not only creates opportunities but also significant challenges, especially for Micro, Small and Medium Enterprises (MSMEs) which are the backbone of the local economy. Inequality in access to capital, technology and infrastructure between MSMEs and large companies is a major barrier that needs to be overcome. This research examines two main problems, namely the impact of Government Regulation Number 62 of 2019 policy on the growth of MSMEs in the Batam Free Trade Area and the challenges faced by MSMEs in accessing capital, technology and resources to compete amidst the dominance of large companies and imported products. This research uses a qualitative descriptive method with an empirical approach. Primary data was collected through semi-structured interviews with MSME actors, the Batam Business Agency (BP Batam), and the Department of Cooperatives and MSMEs. Secondary data consists of policy documents, statistical reports and relevant literature. Data analysis was carried out inductively to evaluate the effectiveness of existing policies and formulate strategic recommendations based on field findings. This research found that the free trade area policy in Batam provides great opportunities for MSMEs to access wider markets and take advantage of the fiscal facilities provided. However, its implementation has not fully benefited MSMEs due to limited information, complex bureaucracy and lack of technological capacity. Local products often cannot compete with imported products which have higher quality and more competitive prices. Apart from that, access to formal funding is still a major obstacle for MSME players. The recommendations put forward include increasing access to financing through low-interest credit, providing business and technology training, as well as promoting strategic collaboration between MSMEs and large companies to create an inclusive business ecosystem.

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