The transfer of authority for environmental permitting services to the Batam Indonesia Free Zone Authority (BP Batam) has created new dynamics in public service delivery, particularly in institutional coordination, service mechanisms, and the adjustment of stakeholder roles. Although this policy change is part of bureaucratic reform in the environmental permitting system, limited studies have examined the implementation of environmental permitting services by BP Batam. Therefore, this study aims to analyze the implementation of environmental permitting services using Merilee S. Grindle’s policy implementation theory, which emphasizes the dimensions of Content of Policy and Context of Implementation. This research employed a descriptive qualitative approach. Primary data were collected through in-depth interviews with six key informants and supported by observation and secondary data. The data were coded using NVivo, analyzed through the interactive model of Miles, Huberman, and Saldaña, and subsequently interpreted using Grindle’s policy implementation framework. The findings indicate that the implementation of environmental permitting services has generally been carried out in accordance with the policy objectives, with the primary changes occurring in the transfer of authority and service mechanisms, while the substantive technical aspects of environmental assessment remain unchanged. The success of policy implementation is influenced by stakeholders’ interests, inter-agency coordination, resource readiness, institutional characteristics, and the transitional implementation process. This study concludes that the successful implementation of environmental permitting.