Batam - Large-scale Social Distancing (PSBB) failed to be implemented in Batam, Riau Islands. Economic factors are the reason why the government does not implement PSBB.

The Mayor of Batam, HM Rudi said there was a significant economic impact if the PSBB was implemented in Batam.

"I do not want Batam economy to be totally paralyzed, I will make a special report, hopefully it can be reviewed," Rudi said in his remarks during the opening of the Batam City Development Planning Meeting (Musrenbang) at the level of the Engku Putri Plain, Thursday (23/4 / 2020).

Rudi conveyed the economic impact if the PSBB was implemented it would be very pronounced in the industrial sector. Because so far the industry in Batam has contracted with outsiders.

"If the company stops its production for two weeks, then the contract could be terminated forever," he said.

In addition to terminating the contract, the company will be fined because it is not in accordance with the agreed contract. And this company in the Muka kuning Industrial Estate as a whole is carrying out the contract.

Then the other impact is the price of goods needed for Batam will increase, because when it’s docked on Batam the goods ship must undergo a quarantine period of 14 days.

"Must pay for the cost of all goods transportation charges, if 14 days must be quarantined, the entire price of Batam needs will rise by itself," he explained.

He also added that the Regional Original Revenue (PAD) of Batam City could only be reached 30 percent or around Rp 400 billion, from the total Batam PAD of Rp 1.1 trillion.

The non-achieving PAD said Rudi was also due to Covid-19 at this time, and the handling costs for the global pandemic had been set at Rp. 268 billion.

"The funds are for free food and hospitals," said Rudi.

Rudi will make a special report to the Governor of Riau Islands regarding the cancellation of this PSBB.

Previously reported the Governor of the Riau Islands, Isdianto will submit PSBB for Riau Islands region, but the submission has not been given to the Indonesian Ministry of Health (Kemenkes) because it is awaiting requests from each district/city.