19-9-2023 (JAKARTA) Indonesia’s commitment to transforming the resource-rich Rempang Island, located south of Batam, into a bustling industrial park remains steadfast. This determination follows recent clashes between local villagers and law enforcement personnel over a proposed relocation plan tied to the project.
Investment Minister Bahlil Lahadalia unveiled plans on Monday for an enhanced strategy to compensate and relocate the affected villagers on Rempang Island. Notably, this revised plan explores the possibility of relocating residents within Rempang Island itself, as an alternative to the earlier proposal of moving them to Galang Island, situated just south of Batam and Rempang.
Rempang Island is renowned for its abundant quartz sand, a critical resource in the production of solar panels. Officials anticipate that the industrial park will house processing plants, primarily dedicated to the production of raw materials for photovoltaic solar panels.
The Indonesian government has underscored a significant investment commitment of US$11.6 billion (approximately S$16 billion) from China’s Xinyi Glass Holdings, the world’s leading manufacturer of photovoltaic glass. This substantial investment is poised to fuel the comprehensive development of Rempang Island.
In December 2022, representatives from Xinyi Glass Holdings initiated discussions with local authorities in Rempang and Indonesian tycoon Tomy Winata of the Artha Graha group, which holds an 80-year concession for the area.
By May of the current year, these stakeholders reached a consensus to jointly transform Rempang Island into the multibillion-dollar Rempang Eco-City industrial park. The project’s initial phase will encompass 2,300 hectares, with the potential for a total of 7,000 hectares of non-forested land allocated for the venture. Notably, out of Rempang Island’s total land area of 17,000 hectares, approximately 10,000 hectares are covered by natural forests.
The proposed relocation will impact the island’s population of 7,500 villagers, as well as farms, businesses, and schools. Each household affected was initially offered 500 sq m of land with a 45 sq m house on Galang Island as compensation.
However, tensions flared on September 7 when villagers, many of whom have lived on Rempang Island for generations, clashed with the police during preparations for relocation. This unrest escalated into riots on September 11, leading to the arrest of 43 individuals accused of instigating violence and assaulting authorities.
In a bid to defuse the situation, Minister Bahlil held a meeting in Batam on Sunday with Home Affairs Minister Tito Karnavian, Agrarian and Spatial Planning Minister Hadi Tjahjanto, and deputy national police chief commissioner General Gatot Eddy Pramono. During the meeting, they collectively agreed to adopt a more conciliatory approach towards the protesting Rempang residents.
Minister Bahlil emphasized the importance of the project, stating, “If we let this (project) slip, potential revenue for the local governments and job creation would be lost.” He appealed to the residents, emphasizing that their concerns were being taken into consideration.
In contrast to the earlier offer, which proposed fixed compensation regardless of property size, authorities have now agreed to provide additional compensation to owners of properties larger than 45 sq m, based on the building’s size.
Regarding the residents’ request to be relocated within Rempang Island itself, Minister Bahlil indicated that he would examine the project’s master plan upon returning to Jakarta to assess the feasibility of such a proposal.
The Rempang Eco-City project aligns with Indonesia and Singapore’s joint initiative to develop a floating solar farm in Batam, with the goal of generating approximately 2 gigawatts of electricity to be transmitted to Singapore via undersea cables. The Indonesian government has stipulated that the Batam solar farm must comprise 40 per cent “local content,” referring to locally manufactured components and equipment.
This venture positions Rempang Island as Indonesia’s first location for a major commercial photovoltaic plant operating on a large scale. Presently, Indonesia has only a few photovoltaic plants, each with less than 50 megawatts of capacity.
Singapore’s commitment to importing 2 gigawatts of renewable energy annually from Indonesia within five years represents the Republic’s most significant endeavor to date in importing low-carbon electricity. This imported energy would account for approximately 15 per cent of Singapore’s annual electricity needs, marking the country’s largest cross-border electricity contract to date.
On September 8, Singapore’s Energy Market Authority conditionally approved five projects for importing a total of 2 gigawatts of low-carbon electricity from Indonesia to Singapore. These projects are managed by Pacific Medco Solar, Adaro Solar International, EDP Renewables Asia-Pacific, Vanda RE, and Keppel Energy.
According to Second Minister for Trade and Industry Tan See Leng, the approvals represent a pivotal moment for Singapore’s green energy aspirations. Singapore has committed to importing 4 gigawatts of low-carbon electricity by 2035.
