IAW asks Prabowo to evaluate PSN Rempang after Xinyi denies being the main investor

JAKARTA - The government of President Prabowo Subianto is asked not to just continue the investment narrative built in the era of the 7th President of the Republic of Indonesia Joko Widodo regarding the Rempang Eco-City National Strategic Project (PSN). Legal and governance issues must be resolved to provide certainty for all parties.

The demand was made by the Founding Secretary of Indonesian Audit Watch (IAW), Iskandar Sitorus after Xinyi Glass Holdings Limited stated that it had never signed a contract or initiated the Rempang Eco-City project.

According to Iskandar, the recognition of the Hong Kong-based company is a momentum to evaluate projects that are promoted as investments worth Rp174 trillion.

"Until now, the public has been convinced that Rempang will be a giant investment magnet. However, after Xinyi himself spoke up, it was revealed that there was never a binding investment agreement or contract. This is no longer about whether or not the investment will be canceled, but about how the investment narrative is built before the legal foundation is really ready," said Iskandar in his statement quoted Monday, July 20.

Xinyi's statement to the Business & Human Rights Resource Centre on February 3, 2025, Iskandar said, could be the basis for the public announcement of the investment value of IDR 174 trillion. Because, the company has never initiated an eco-city project or signed an agreement with the Indonesian Government.

Xinyi, still said Iskandar, only received an initial offer regarding the price and project requirements from the Batam authorities. "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 said.

Xinyi's statement, said Iskandar, was reiterated in the ESG Report 2025 published in April 2026. The company stated that it was neither a developer nor a proponent of the Batam Eco-City project and decided not to continue the investment plan after considering the social and environmental impacts.

"This means that the claim regarding the main investor was dropped by the company's own admission. Even the plan to build a power plant that had been associated with Xinyi was denied because there was never an agreement or contract," he said.

In addition, Iskandar highlighted the lack of openness of PT Makmur Elok Graha (MEG) as the developer of the Rempang Eco-City area. According to him, the company has not provided an explanation regarding various issues that have emerged during the development of the area.

"In fact, various reports regarding social conflicts, alleged violence against residents, to the eviction process continue to emerge. The state should ensure that strategic national project partners also implement the principle of accountability," said Iskandar.

Iskandar also reminded that the results of the investigation by the Indonesian Ombudsman which found a number of maladministration in the Rempang project should not be ignored. Starting from the issue of recognition of the Old Village, the status of land that has not been clear and clean, the determination of PSN which is considered too hasty to handling conflicts that trigger fear among the community.

"If basic issues such as land status, indigenous people protection, to legal certainty are not completed, do not rush to build an investment narrative. It is precisely the foundation that must be settled first so that investors have certainty and the community gets justice," he said.

Therefore, Iskandar assessed that the government of President Prabowo is now inheriting a large amount of work related to Rempang. The government is not required to maintain the investment narrative but focuses on solving the root of the problem so that the conflict does not continue to linger.

"The task of the current government is not to inherit an immature investment narrative, but to solve all legal issues, improve its governance, restore public confidence, and ensure that every strategic project is really built on legal certainty. Investment announcements may give political benefits for a moment, but if the foundation is fragile, the people and the next government will bear the consequences," concluded Iskandar.