Rempang Eco-City: Cost of Grand Development
September 28, 2023: This is the deadline that was given to about 7,500 residents of Rempang Island to leave their homes. The Indonesian island is located in the Riau Archipelago, at the gateway to the Malacca Strait and near Sumatra. The 7,500 residents include Malay, Orang Laut, and Orang Darat people who reportedly have been living there since the 1800s.
The displacement of Rempang residents is a consequence of a deal made in July 2023 between Indonesia and China. According to the agreement, Xinyi Group, a major Chinese glass producer, committed $11.5 billion to build a quartz sand processing plant in the middle of an industrial park in Indonesia, Rempang Eco-City.
However, Rempang Eco-City will be built on land that has been settled for centuries. Residents are fighting to stay in their villages but their resistance has been met with immense backlash from the government. On September 11, 2023, residents gathered in protest outside the government agency responsible for local construction and development, and threw bottles and rocks at the building. Police used water cannons and tear gas on the demonstrators. In a similar incident, residents resisted the efforts of the land survey team to measure their land for development. Police responded with tear gas, which led to the hospitalization of dozens of nearby middle schoolers. However, despite the use of force, authorities claim that there were no casualties.
Indonesian President Joko Widodo has remarked that these protests stemmed from a lack of communication between local authorities and residents. In response, he tasked Investment Minister Bahlil Lahadalia with informing Rempang residents that they would receive compensation from the land acquisition. Lahadalia conveyed to residents that there would be an improved plan to compensate and relocate Rempang residents. Prior to the protests, each household was offered 500 square meters of land with a 45 square meter house on Galang Island. Part of the improvements promised is that people who own properties larger than 45 square meters will receive extra reparation based on the size of the building. Lahadalia is also investigating the possibility of accommodating residents’ requests to be relocated to somewhere else on the island. While the government has not removed security forces from Rempang Island, it is looking to extend the eviction deadline.
Rempang Eco-City is not the first time locals have clashed with government authorities, and will unlikely be the last. As Indonesia seeks to increase development and attract greater investment, it has turned to infrastructural projects that tend to displace indigenous communities. For example, the Mandalika project is a $three billion tourism development megaproject that is being implemented by the state-owned Indonesia Tourism and Development Corporation and funded mostly by the Asian Infrastructure Investment Bank. The project includes parks, resorts, hotels, and the Mandalika International Circuit—a motorcycle racetrack hosting international sporting events—on Lombok island, in West Nusa Tenggara Province. The project has been criticized by the United Nations and various human rights groups due to accusations of police and military forces using excessive force to evict residents and restricting the freedom of expression of the Sasak Indigenous Peoples.
Both Rempang Eco-City and the Mandalika project are part of the trend of increasing economic ties between China and Indonesia. In early September, Chinese Premier Li Qiang met with President Widodo and “pledged $21.7 billion in new Chinese investment in Indonesia to strengthen the countries’ economic and political ties.” This came after Chinese President Xi Jinping announced in July that China, Indonesia’s largest trade and investment partner, would make a $44.89 billion USD investment commitment to Indonesia.
While the Rempang Eco-City was estimated to create about 35,000 jobs in Indonesia, the protests of Rempang residents highlight the Indonesian government’s relentless pursuit of large-scale investment and development projects. Investment and development can be a beneficial part of Indonesia’s national growth, but the process should incorporate the needs of local communities.
Siwage Dharma Negara, a senior fellow and co-coordinator of the Indonesia studies program at the ISEAS-Yusof Ishak Institute, has commented, “I think the way they approached it was too fast… [Joko Widodo] always wants everything to be quick, but the problem with that is sometimes you miss the first steps that are important to get support from the community and other stakeholders.” As the Indonesian government continues to move forward with projects that will require the movement of native residents and engage foreign actors, it should discuss possibilities and seek approval from local communities before implementation, rather than a remedial measure to protest. Afterall, economic development should not come at the expense of the people it is meant to benefit.