White Paper: Valuation of Losses from the Rempang Eco City Project
Summary
The report evaluates the impact of the Rempang Eco City project, a National Strategic Project (PSN) intended for solar panel and alumina industries. Through economic valuation, the study finds that the average household income on Rempang Island is IDR 32.77 million per month, contradicting government claims of IDR 3 million. The research estimates that the project causes environmental losses of approximately Rp109 million per household per month, driven by the destruction of mangrove ecosystems, loss of livelihoods in fisheries and agriculture, and forced relocation. The document criticizes the project's Environmental Impact Assessment (AMDAL) for lacking community participation and transparency, and recommends the complete cancellation of the project to ensure socio-ecological justice.
Key insights
- The economic valuation of household income on Rempang Island reveals an average of IDR 32.77 million per month, which is significantly higher than the government's claim of IDR 3 million per month.
- Potential environmental losses for households are estimated at Rp109 million per month, a figure approximately 3.33 times greater than the actual average household income.
- The total annual value of environmental impacts from the Rempang Eco City project is estimated at Rp107,590,587,432.
- The project's first phase covers approximately 2,300 hectares and is divided into three zones: Zone 1 for solar panel manufacturing (1,154 ha), Zone 2 for an alumina refinery (800 ha), and Zone 3 for residential and commercial use (371.4 ha).
- Mangrove ecosystems provide critical indirect economic values, including wave-breaking functions valued at Rp18,518,085,600 per year and seawater intrusion prevention estimated at Rp36,196,644 per household per year.
- The report identifies severe failures in the Environmental Impact Assessment (AMDAL) process, noting that project activities began before environmental approval was issued and that community participation was minimal and 'conditioned'.
- The project has led to the criminalization of local residents, with approximately 43 people named as suspects in 2023 for opposing the development.
- Despite government promotion of Xinyi Group as a major investor, the company stated in February 2025 that it had not initiated any eco-friendly city project nor reached any agreement or contract regarding the development.
- The study estimates specific rehabilitation and mitigation costs, including Rp28,005,120,000 for mangrove restoration and Rp37,497,600,000 for the construction of seawalls to mitigate abrasion.
Cite the original document
- APA
- Setiawan, A. A., Pradana, B., Bobi, Yazid, F., Paramesthi, T., Sahputra, Y. E., by, Z. A. R., & 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 Rewritten by, 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=by |first7=Zakki Amali Rewritten |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 by, Zakki Amali Rewritten 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} }
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