This is Indonesia's loss if Xinyi Glass Holding fails to invest in Rempang Island

Illustration. (Photo: Doc. Antara)

JAKARTA - Xinyi Glass Holdings Ltd is one of the investors that will set up a glass factory on Rempang Island with an investment value of IDR 175 trillion. Unfortunately, the development process for the Rempang Eco City national strategic project (PSN) is progressing slowly because the residents of Kampung Tua, Pasir Panjang on Rempang Island refuse to be relocated.

In fact, the Rempang Eco City plan can provide escalation to improve the quality of life and welfare of Rempang-Galang residents. The question is, what if Xinyi Glass Holdings Ltd abandons its intention to invest in Indonesia?

Head of BP Batam's Public Relations, Promotion and Protocol Bureau, Ariastuty Sirait, said that there would be many positive impacts for the people living in the Barelang area to Indonesia on a larger scale if this investment goes ahead.

The growth in investment realization will be balanced by the involvement of Micro, Small and Medium Enterprises (MSMEs). Strategic partnerships between large companies and MSMEs will continue to be developed. Thus, investment entering the region will have a positive impact on the development and economic development of the people.

"MSMEs will be very alive. All of these processes will involve MSMEs. A simple example is the business of basic commodities and food, which will of course provide the people there who can take a role. Workers don't need to go far to Batam. MSMEs can enter the global supply chain so that increase the chances of our MSMEs being able to advance to class," said Tuty, in a written statement, Monday 25 September.

Meanwhile, economic observer from the Indonesia Strategic and Economics Action Institution, Ronny P Sasmita, said that investment is one of the contributors to economic growth that the government currently hopes for. Because it has a multiplayer effect on opening jobs and other economic impacts on other sectors.

"In terms of economic growth, investment is one of the expected contributors to growth. Moreover, the global economy is currently still showing weakness," said Ronny in Jakarta, Friday, September 22, 2023.

The reason, he said, is that investment is one of the government's hopes of being able to boost economic growth amidst the threat of the current global crisis.

"There are currently only two main hopes for economic growth, namely government spending and investment," he said.

He further said that Indonesia would suffer a big loss if the Chinese company Xinyi Group canceled its investment in Rempang Island.

"There will definitely be big losses if Xinyi Glass Holding fails to invest in Indonesia. Because if the investment is realized, there will be job opportunities, technology transfer, and added value to our raw commodity quartz sand and it is good for the Indonesian economy. The loss is that we will lose that," he said.

Ronny said that investment on Rempang Island provides an opportunity to improve the quality of human resources, as well as create new economic opportunities for the Rempang community.

"Rempang development means regional development, construction of public facilities, employment opportunities, opportunities to improve the quality of human resources in the community, economic opportunities for the community because there will be new workers there who will earn income, they will shop, have families, new demand will be formed and new business opportunities for society," he said.