| Summary: | The decentralization that occurred in Batam city which giving greater
authority to the Government of Batam city poses a problem. The problem occurs
because in Batam city there has been a specialized agency, called Otorita Batam,
which is the delegator of the Central Government. Otorita Batam was formed based
on Presidential Decree No. 41 in 1973. The decentralization that occurred in Batam
city are not followed by removal of the Otorita Batam, so in Batam City there are two
leadership that rises to a dualism of authority. Dualism of authority occurred in the
service of the administration of capital investment in Batam city.
This research aims to know the impact of dualism of authority that took place
between the Government of Batam city and Badan Pengusaha Batam in the service of
the administration of capital investment in Batam city. This study uses qualitative
method which is descriptive. The Data used are both of the primary and secondary
data on the Badan Pengusahaan Batam and the Government of Batam city in 2013.
Data was collected by interview, observation, and documentation. Data collection
from this research were analyzed by qualitative method.
The results of this research show that the emergence of dualism of authority in
Batam city it is not only because of the implementation of decentralization but also
influenced by other factors: First, the clash of regulation between Government of
Batam city and Badan Pengusahaan Batam. Second, the absence of regulations about
job relationships between Government of Batam city and Badan Pengusahaan Batam.
Third, conflict of interest in the financial management of the resources and
permissions that exist in Batam city.
The existence of dualism of the authority in the service of capital investment
administration is clearly visible in the division of authority in the form of licensing,
which are licensing belongs to the Government of Batam City and licensing belongs
to the Badan Pengusahaan Batam. In the Division of authority in the form of
licensing, those are almost same but both of the licensing are done by two different
institutions.
The dualism of authority in the service of capital investment administration in
Batam city has negative impacts for investors, the effects are: First, the lack of legal
certainty for investor. Second, licensing and time procedure need a longer time.
Third, Double cost or extra charges for investor.
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