White Paper: Valuation of Losses from the Rempang Eco City Project

This white paper by Trend Asia provides an economic valuation of the potential losses resulting from the Rempang Eco City project on Rempang Island. The report argues that the project, framed as a 'green economy' transition, threatens the livelihoods of indigenous and local communities and causes significant ecological degradation. Through a mixed-methods approach, the research calculates that the total economic value of the island's ecosystems per household is far higher than government claims, and that the potential environmental losses from the project would be more than three times the average household income.

• The research identifies a significant discrepancy between the government's estimated household income and the actual economic potential of Rempang residents. While the government claims residents earn IDR 3 million per month, the study's valuation reveals an average household income of IDR 32.77 million per month.
• The potential environmental losses per household resulting from the Rempang Eco City project are estimated at Rp109 million per month, which is approximately 3.33 times the average household's economic potential.
• The total annual value of environmental impacts from the project is estimated at Rp107,590,587,432. This includes losses from environmental disruption (comfort), loss of terrestrial flora and fauna, loss of livelihoods, and coastal abrasion and accretion.
• The Rempang Eco City project is divided into three primary zones for its first phase, covering approximately 2,300 hectares: Zone 1 (1,154 hectares) for a Photovoltaic Solar Industrial Park, Zone 2 (800 hectares) for an alumina refinery, and Zone 3 (371.4 hectares) for housing, commercial activities, and tourism.
• The report critiques the project's Environmental Impact Assessment (AMDAL), stating it was initiated before environmental approval was issued and lacked meaningful community participation, serving as a tool for legitimizing development rather than a predictive instrument.
• The study highlights the critical role of mangrove ecosystems on Rempang Island, providing indirect economic values such as wave-breaking functions (estimated at Rp18,518,085,600 per year) and preventing seawater intrusion (estimated benefit of Rp36,196,644 per household per year).
• Local livelihoods are heavily dependent on the primary sector, with 56 percent of surveyed residents relying on fishing and 34 percent on farming. The study calculates average annual household incomes of Rp303,883,645 from marine capture fisheries and Rp176,027,159 from agriculture.
• The report notes a contradiction regarding the involvement of Xinyi Group, a Chinese investor. While the Indonesian government promotes Xinyi as a major investor, the company issued a statement in February 2025 denying any agreement or contract for an eco-friendly city project in Rempang.
• The project has led to significant social conflict and human rights concerns, including the criminalization of residents. In 2023, approximately 43 people who opposed the development were named as suspects.

APA

Setiawan, A. A., Pradana, B., Bobi, Yazid, F., Paramesthi, T., Sahputra, Y. E., Rew, Z. A., & Handitya, E. (2025). White Paper: Valuation of Losses from the Rempang Eco City Project. Trend Asia. https://trendasia.org/wp-content/uploads/2026/01/White-Paper_-Economic-Valuation-of-Rempang-Eco-City-eng-lytd.pdf

Chicago

Setiawan, Alfa Arifia, Bagus Pradana, Bobi, Ferdian Yazid, Twina Paramesthi, Yogi Eka Sahputra, Zakki Amali Rew, and Eliesta Handitya. White Paper: Valuation of Losses from the Rempang Eco City Project. Trend Asia, 2025. https://trendasia.org/wp-content/uploads/2026/01/White-Paper_-Economic-Valuation-of-Rempang-Eco-City-eng-lytd.pdf.

Wikipedia

{{cite report |last1=Setiawan |first1=Alfa Arifia |last2=Pradana |first2=Bagus |last3=Bobi |last4=Yazid |first4=Ferdian |last5=Paramesthi |first5=Twina |last6=Sahputra |first6=Yogi Eka |last7=Rew |first7=Zakki Amali |last8=Handitya |first8=Eliesta |title=White Paper: Valuation of Losses from the Rempang Eco City Project |publisher=Trend Asia |date=September 2025 |url=https://trendasia.org/wp-content/uploads/2026/01/White-Paper_-Economic-Valuation-of-Rempang-Eco-City-eng-lytd.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{setiawan2025white, author = {Setiawan, Alfa Arifia and Pradana, Bagus and Bobi and Yazid, Ferdian and Paramesthi, Twina and Sahputra, Yogi Eka and Rew, Zakki Amali and Handitya, Eliesta}, title = {{White Paper: Valuation of Losses from the Rempang Eco City Project}}, institution = {Trend Asia}, year = {2025}, month = sep, url = {https://trendasia.org/wp-content/uploads/2026/01/White-Paper_-Economic-Valuation-of-Rempang-Eco-City-eng-lytd.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }