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Controversy Surrounds Eco-City Project in Indonesia with Chinese Investment

by Richie
09/27/2023
in Environmental Policies, Sustainability & Ethics

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Rempang, Indonesia – The Indonesian island of Rempang is at the center of controversy as it faces significant changes due to the development of an Eco City, which includes a large-scale glass factory owned by China’s Xinyi Glass. This project, part of a broader joint initiative between local Indonesian company PT Makmur Elok Graha (MEG) and the Batam Indonesia Free Zone Authority (BP Batam), has raised concerns among the island’s residents.

Approximately 7,500 people from Rempang are facing a deadline to vacate their homes to accommodate the Eco-City project. Despite the Indonesian Investment Minister Bahlil Lahadalia’s assertion that the project will create 35,000 jobs and bring in about $26.6 billion in investment by 2080, locals are worried about the impact on their traditional fishing community and lifestyle.

The Eco-City project, including the $11.6 billion glass factory by Xinyi Glass, aims to transform 17,000 hectares (42,000 acres) of Rempang Island into industrial, service, and tourism areas. This project was discussed during Indonesian President Joko Widodo’s meeting with Chinese President Xi Jinping, focusing on strategic partnerships, including investment in Indonesia’s new capital city and Rempang Island development.

The deal with Xinyi Glass, seen as part of Indonesia’s strategy to attract foreign investment and boost GDP, was designated as a National Strategic Project, granting authorities the power to acquire land for construction, even if it necessitates relocating residents. The move to develop Rempang into an Eco-City represents a significant shift from earlier plans that focused more on tourism and preserving local heritage.

The strategic location of Rempang, near Malaysia and Singapore, makes it an attractive site for industrial development. However, environmental concerns have been raised, particularly regarding the potential impact on local ecosystems and small islands in the surrounding area.

The local residents, many of whom have lived on Rempang for generations, have expressed strong opposition to the project. Protests against the development have been met with police resistance, and the government has offered new housing in Batam as compensation. However, with the construction of these houses still ongoing, families will initially need to move into temporary accommodations.

As the September 28 deadline approaches, the tension on Rempang Island highlights the complex issues surrounding large-scale industrial projects, especially those involving significant foreign investment and the displacement of local communities.

Breaking supply chain news is just a click away at The Supply Chain Report. Enhance your knowledge of international trade at ADAMftd.com with free tools.

#RempangEcoCity #XinyiGlass #PTMakmurElokGraha #BPBatam #IndonesiaDevelopment #ForeignInvestment #EcoCity #GlassFactory #SustainableDevelopment #IndonesianEconomy #JobCreation #IndonesiaChinaRelations #RempangIsland #EnvironmentalConcerns #DisplacedCommunities #IndustrialDevelopment #Batam #StrategicPartnerships #LocalProtests #RempangIslandDevelopment #InvestmentInIndonesia #RelocationChallenges

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