Inp.polri.go.id – Jakarta. Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan has voiced optimism over the continuation of the investment endeavor by China’s leading glass manufacturer, Xinyi Group, in Rempang Island, Riau Islands, despite recent local conflicts.
“We must ensure they stay with us and not go elsewhere. Historically, due to oversights, investors have taken their ventures elsewhere. It’s imperative that we scrutinize our own actions and rectify any shortcomings. We can’t afford to be complacent, if we’re at fault, we’ll take decisive action to make amends,” he said while addressing the 2nd Edition Marine Spatial Planning & Services Expo 2023 in Jakarta, on Tuesday (19/9/23)
The Minister advocates for the retention of Rempang Island’s National Strategic Project status, underscoring its far-reaching potential.
“Why revoke it? If something’s amiss, we’ll rectify it. Cancelling the project would be detrimental. Its continuation would boost Indonesia’s Domestic Component Level (TKDN), create job opportunities, and advance PV technology, solar panels, and semiconductors,” the Minister emphasized.
He raised his belief that the investors were convinced by the government’s efforts to proceed with their plans, assuring them about the resolution for Rempang Island’s conflicts .
Rempang Eco City has been listed in the National Strategic Project (PSN) for industrial, tourism, and other needs. It is regulated in the Coordinating Minister for Economic Affairs Regulation No. 7 of 2023, ratified on August 28, 2023.
Xinyi Group, a global glass industry leader with a 20 percent market share, is poised to construct the world second largest glass and solar panel factory in Rempang Island, Batam, after China. Xinyi Group’s intended investment of USD 11,6 billion in downstream silica sand and silica ecosystem development in Rempang Island is expected to absorb around 35.000 Indonesian workers.
The Batam investment plan is Xinyi’s second project in Indonesia. The Group has invested US$700 million in the first phase of a large-scale comprehensive glass manufacturing base in the JIIPE (Java Integrated and Industrial Port Estate) area in Gresik, East Java last year. Production is expected to start in the middle of next year.