IAW: Government's Task Is Not to Inherit Immature Investment Narratives
Jakarta – The official statement from Xinyi Glass Holdings Limited, claiming it never signed a contract nor initiated the Rempang Eco-City project, is seen as a turning point to reveal the facts behind the massive investment narrative built during the era of Indonesia’s 7th President Joko Widodo.
Indonesian Audit Watch (IAW) Founding Secretary Iskandar Sitorus assessed that the Hong Kong-based company’s admission proves the importance of re-evaluating the governance of the Rempang Eco-City National Strategic Project (PSN), which was initially promoted as an investment worth Rp174 trillion.
“All this time, the public has been convinced that Rempang would become a magnet for giant investment. However, after Xinyi itself spoke up, it was revealed that there was never a binding investment agreement or contract. This is no longer about whether the investment is cancelled or not, but about how the investment narrative was built before its legal foundation was truly ready,” Iskandar said in a statement on Sunday, 19 July 2026.
According to Iskandar, the statement delivered by Xinyi to the Business & Human Rights Resource Centre on 3 February 2025 is an important fact that cannot be ignored. In its clarification, Xinyi stated it never initiated the eco-city project nor signed any agreement with the Indonesian government. The company only received an initial offer regarding the price and project requirements from the Batam authority.
“If the main investor itself says there was never a contract, then the public has the right to question the government’s basis for announcing an investment value of Rp174 trillion. An investment of that size should be based on clear legal documents, not just initial discussions or explorations,” he said.
Iskandar added that this explanation was further reinforced in the 2025 ESG Report published by Xinyi in April 2026. In the report, the company confirmed it was neither the developer nor the proposer of the Batam Eco-City project and decided not to proceed with the investment plan after considering the social and environmental impacts.
“What is interesting is that Xinyi actually admitted to considering the aspirations of the community and concerns about mangrove conservation before deciding to withdraw. On the other hand, the government at the time continued the project even as public rejection grew stronger. This is an irony that deserves evaluation,” he said.
Furthermore, Iskandar assessed that Xinyi’s withdrawal also unveils the weak foundation of the investment narrative that the government had been building all along.