<![CDATA[This study examines the historical dualism and legal vacuum in the governance of Batam, Indonesia, stemming from the overlapping authorities between the Batam Municipal Government (territorial autonomy) and the Batam Authority/BP Batam (functional economic autonomy). This prolonged legal uncertainty, originating from unfulfilled legislative mandates post-1999 regional autonomy laws, has significantly hindered the region's economic competitiveness and overall investment climate. Conducting a normative legal research methodology utilizing statute and conceptual approaches, this paper critically analyzes the institutional integration and the strict demarcation of authority between the two entities. The findings reveal that the structural deadlock was resolved through the ex-officio mechanism, institutionalized by Government Regulation (PP) No. 62/2019 and PP No. 4/2025, which designates the Mayor and Deputy Mayor as the Chairmanships of BP Batam. The Supreme Court validated this arrangement by classifying BP Batam as a Public Service Agency (BLU), circumventing standard dual-office prohibitions. Furthermore, the study demonstrates a fundamental paradigm shift in business licensing within the Free Trade Zone. Driven by risk-based licensing reforms (PP No. 25/2025 and PP No. 28/2025), BP Batam is now firmly established as the single licensing authority. Applying the principle of lex specialis derogat legi generali, this specific regulatory framework overrides the general regional licensing provisions (PP No. 6/2021), rendering the local government's licensing authority null and void within the free trade zone delineation. Ultimately, this research theorizes that Batam has successfully transitioned into a dual governance model. This model harmonizes territorial decentralization for public service delivery with functional autonomy for strategic economic zone management, proving that the existence of a special economic authority reconfigures, rather than eradicates, local government functions, thereby ensuring absolute legal certainty for domestic and foreign investors.]]>
