IAW Urges Prabowo to Re-evaluate Rempang Eco-City Amidst Investor Doubts

The government of President Prabowo Subianto is urged to re-evaluate the investment narrative of the Rempang Eco-City National Strategic Project (PSN), rather than simply continuing the narrative built during the era of former President Joko Widodo. The Indonesian Audit Watch (IAW) asserts that resolving legal and governance issues is crucial to provide certainty for all parties involved. This demand was voiced by Iskandar Sitorus, Founding Secretary of IAW, following Xinyi Glass Holdings Limited's denial of having signed any contract or initiated the Rempang Eco-City project. He believes Xinyi's statement provides a critical moment to evaluate the project, which has been promoted as an investment worth Rp174 trillion. According to Iskandar, Xinyi has stated that it has never signed an investment contract or agreement with the Indonesian government. "If the main investor himself says there has never been a contract, then the public has the right to question the government's basis when announcing the investment value of Rp. 174 trillion. An investment of that size should stand on a clear legal document, not just initial talks or exploration," he stated. Xinyi reiterated in its 2025 ESG Report that it was neither the developer nor the proponent of the project and decided not to proceed with investment plans after considering social and environmental impacts. This effectively negates claims of being the main investor. Furthermore, Iskandar highlighted the lack of transparency from PT Makmur Elok Graha (MEG), the developer of the Rempang Eco-City area. He criticized MEG for failing to provide explanations regarding various reports of social conflicts, alleged violence against residents, and eviction processes that continue to emerge. IAW also pointed to the Indonesian Ombudsman's findings of several maladministrations in the Rempang project, including issues with Old Village recognition, unclear land ownership status, the hasty designation as a National Strategic Project, and conflict resolution that has instilled fear in the community. Iskandar stressed that basic issues such as land ownership, protection of indigenous people, and legal certainty must be resolved before rushing to build an investment narrative. He argued that these foundational elements must be settled first to ensure investors have certainty and the community receives justice. Therefore, Iskandar assesses that the Prabowo administration inherits a significant workload concerning Rempang. He suggests the government should focus on resolving the root causes of the problems rather than maintaining the existing investment narrative. While investment announcements might offer temporary political benefits, a fragile foundation will ultimately lead to consequences borne by the people and the next government, he concluded. Source: VOI English