JAKARTA - An Indonesian minister said on Monday the country wants to turn Rempang island south of Batam into an industrial park after clashes broke out between villagers and police over relocation plans.
Investment Minister Bahlil Lahadalia on Monday promised an improved plan, including compensation for villagers affected by the Rempang project and their relocation to the island instead of Batam and Galang islands south of Rempang.
Rempang is rich in quartz sand, which is used to make solar panels. Officials say the industrial park is expected to house processing facilities that will, among other things, produce raw materials for the production of photovoltaic solar panels.
The government announced a US$11.6 billion (Singapore $16 billion) investment commitment by China's Xinyi Glass Holdings, the world's largest photovoltaic glass maker, in Rempang.
In December 2022, Xinyi officials met with the local government of Rempang and Indonesian tycoon Tommy Winata of the Artha Graha Group, which owns the 80-year concession for the area.
In May this year, the partners agreed to jointly develop the island into the billion-dollar Rempang Eco-City Industrial Park.
The project will allocate 2,300 hectares and a total of 7,000 hectares of non-forest land in the first phase. About 10,000 hectares of the 17,000 hectare island is natural forest.
The move will affect the island's 7,500 villagers, including farms, shops and schools. As compensation, each house was offered 500 square meters of land and a 45 square meter house on Galang Island.
But on September 7, villagers, many of whom have lived in Rempang for generations, clashed with police as authorities began evacuation preparations. On September 11, riots broke out and 43 people were arrested for inciting violence and attacks on authorities.
Mr. On Sunday, Bahlil met with Interior Minister Tito Karnavian and Agriculture and Land Planning Minister Hadi Jahjanto in Batam. and National Police Deputy Commissioner General General Gatot Eddy Pramono, and agreed to take a soft approach to the protesting residents of Rempang.
“If we let this (project) fail, local governments will lose potential revenue and jobs,” Bahlil said Monday, repeating his appeal to journalists and residents he had just met.
According to him, unlike the previous proposal, which provided fixed compensation to villagers regardless of the size of the house, the authorities have now agreed to offer owners of plots over 45 square meters additional maintenance services based on the size of the building.
“Residents are still being asked to evacuate the interior of the island. When I come back to Jakarta, I will discuss it and review the project master plan to see if it is feasible,” said Dr. Bahlil.
