Batam Infrastructure Partnerships Face New Rules: Excess Profit Sharing and Stricter Compliance Requirements Introduced for KSPI Projects

The Batam Free-Trade Zone and Free Port (Kawasan Perdagangan Bebas dan Pelabuhan Bebas – KPBPB”) Development Authority (Badan Pengusahaan KPBPB Batam – “BP Batam”) has issued Regulation of the Head of BP Batam No. 6 of 2026 on Procedures for the Utilization of Assets (“Regulation 6/2026”). The enforcement of Regulation 6/2026 has resulted in the repeal and replacement of four BP Batam-related regulatory frameworks, including Regulation of the Head of BP Batam No. 5 of 2021, which bore the same title as Regulation 6/2026, as amended by Regulation of the Head of BP Batam No. 9 of 2022 (collectively referred to as “Regulation 5/2021”).[1]