Minister of Investment, Bahlil Lahadalia, stated that President Joko Widodo will issue a Presidential Regulation regarding the implementation of the Rempang Eco City investment. This policy will govern land ownership for the communities affected by the investment.
Bahlil emphasized the importance of this regulation as the majority of the affected communities reside on land categorized as Conservation Production Forest (Hutan Produksi Konservasi – HPK).
Currently, only those living on land designated as Other Usage Areas (Area Penggunaan Lainnya – APL) are eligible for compensation, according to him.
“If we strictly apply formal legal procedures, the easiest way to resolve the issue would involve law enforcement agencies. However, solving the problem in Rempang requires two perspectives: one as residents of the area and the other as the government,” Bahlil explained during a working session with the DPR Commission VI on Monday, October 2, 2023.
Compensation to be provided for households
Bahlil did not provide further details on how many households (Kepala Keluarga – KK) live on APL land. Nevertheless, he announced that the APL land to be used for the investment covers only 570 hectares.
Meanwhile, the total HPK land in the investment area amounts to 7,527 hectares, with 2,300 hectares designated for the initial phase of the Rempang Eco City Park project.
The affected communities will receive two types of compensation: IDR 1.2 million for each individual and IDR 1.2 million for each household (KK). Bahlil stated that the compensation funds would be provided by the government through the Batam Authority.
Furthermore, Bahlil clarified that each household head will be granted a Land Ownership Certificate (SHM) for a 500 square meter area in Tanjung Banon. He emphasized the significance of this step, as 900 affected households currently do not possess SHMs for the land they occupy.
No compensation without regulation
Bahlil emphasized that the Batam Authority could face legal consequences if they provide compensation without specific regulations. This is because there is no legal basis for compensating residents living on illegal land.
“Allow us to find the correct and lawful formulation to ensure that our policy accommodates our fellow citizens who do not reside in APL areas to receive compensation,” he added.
Bahlil acknowledged that some of the residents living on HPK land have been there for generations. This is evident from population density maps updated every 10 years. However, some houses have appeared in areas where settlements should not exist.
Crucial for investment progress
Furthermore, Bahlil emphasized that the issuance of these regulations must be completed before the construction of replacement homes for the affected residents is finished. This is crucial in relation to the government’s commitment to the Rempang Eco City investor, Xinyi Group.
Meanwhile, the Director-General of Cipta Karya at the Ministry of Public Works and Public Housing (PUPR), Diana Kusumastuti, stated that PUPR would be involved in the relocation project for the residents of Rempang Island affected by the Rempang Eco Park investment project. The ministry will begin surveying relocation sites to build public and social facilities in the area.
Diana mentioned that some of the infrastructure to be developed includes a Drinking Water Supply System and places of worship.
Therefore, a portion of the infrastructure development funding will come from the national budget.
She noted that the construction of residential infrastructure would not take longer than 12 months. However, the entire residential infrastructure may not be completed within this year.
