New Risk-Based Oversight for Batam Trade: Sub-70% Compliance Scores Set to Trigger Immediate License Suspension

The Head of Batam Free Trade Zone (“FTZ”) and Free Port Authority (Badan Pengusahaan Kawasan Perdagangan Bebas dan Pelabuhan Bebas Batam  - “BP Batam”) has issued the new Regulation No. 8 of 2026 (“Regulation 8/2026”), revoking the previously enforced Regulation No. 25 of 2021 (“Regulation 25/2021”), to overhaul the flow of goods into and out of the Batam FTZ.[1] This framework significantly tightens the quota mechanisms for excisable and consumption goods, drastically shortens the validity period for importing alcohol and tobacco, and introduces a quantified compliance matrix.[2]