Tomy Winata: It's Just Miscommunication

Translator

TEMPO

Editor

Laila Afifa

Sabtu, 23 September 2023 11:32 WIB

TEMPO.CO, Jakarta - It was not easy to convince Tomy Winata to agree to an interview. The name of this entrepreneur became a talking point again after the violence on Rempang Island, Riau Islands province, on Thursday, September 7. The police were trying to clear the 16,500-hectare island by moving its 7,500 inhabitants to Galang Island.

The Batam Development Authority (BP Batam) wants to turn Rempang Island into the Rempang Eco-City, a business and industry center for Batam. The developer is Makmur Elok Graha (MEG), a subsidiary of the Artha Graha Network, the business conglomerate established by Tomy Winata.

When we sent a message by cell phone asking for an interview, there was no reply. According to close associates, Tomy was in Europe seeking investors for the development of Rempang Island. This was why he was only prepared to be interviewed on Thursday, September 14. The next day he was flying overseas. For two hours he spoke about the Rempang Eco-City with Tempo reporters.

What has MEG done during the period 2001-2023?

Negotiations. About the investment, its form, the capital with several investors. In short, it was down to two investors in the end, one from a friendly country and one from us. Finally, the conditions were set. But I don’t know (what happened) when the contract was about to be signed, this friendly country withdrew. Only then did we come in. Only then did we detail the commitment until an agreement was reached in 2004.

Why there hasn’t been much news about the project after that?

We’ve kept corresponding. We kept monitoring.

The plan is to hand over the land this year?

It’s still a plan. They have vacated it and will hand it over to us to prepare the ground for investors.

Who determines the zoning in that region?

We received the result of the meeting between BP Batam and the DPR (House of Representatives). We were given a concept and invited to discussion. “Do you have objection (to the proposal)?” they asked. I didn’t mind. In that area, we will work on only 7,500 hectares, not 17,000 hectares.

What is the concept of the Rempang Eco-City like? Is it the same model as the Sudirman, Central Business District in Jakarta?

A combination. There will be public housing, low-cost housing, low-cost apartments for rent. Also, medium cost (apartments).

What about the industrial zone?

Yes. But on the condition to keep pollution as low as possible.

We heard that Xinyi (a Chinese company) is also coming in. What is the scheme?

In Batam, they (will build manufacturing facilities) of silica and quartz sands as well as solar panels for new and renewable energy.

Is it true that it is asking for 2,000 hectares?

No. If you have a 1,000-meter land, can you use up all of it?

Won’t the presence of the industry disrupt the development concept for the area?

It has been zoned like Bekasi. There are separate industrial and housing zones.

You will also do conservation?

Correct. We’ve prepared a program. For the first phase, if all is clear, we will plant 1,000 to 100,000 trees. That will create jobs too. And 100,000 is not a period but a comma.

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When the project was designated as a national strategic project in April, was there already a timeframe for the delivery and the development plan?

I haven’t seen it till now.

What commitments did MEG have to make at that time?

We have to help the government find investment opportunities. On this premise, I began bringing in investors. Now, when they come, all investors must talk to BP Batam.

Not to MEG?

If I get (investors), I must report to BP Batam, the BKPM (Investment Coordinating Board), and the Coordinating Ministry for the Economy. Like that.

As regards compensation for the Rempang residents, where will the fund come from, BP Batam or MEG?

BP Batam.

So, MEG has no obligations in the land acquisition?

No. So, when people came and asked to talk to me, I said I didn’t mean to turn them away but I didn’t have the authority for direct acquisition (of the land).

How much investment has been committed to this project?

Rempang is earmarked to accommodate investments of Rp381 trillion (around US$24.8 billion—Ed.) within a few decades. But not from foreign investors. Not with companies from other regions. I have to work with BP Batam to build Rp381 trillion worth of investments.

How much of the committed investment fund has been acquired?

It’s still in the discussion, if there are no hurdles, maybe Rp50-60 trillion (US$3.2-3.9 billion).

[Is] the purpose of your Europe trip last week to find investors?

Yes. As an Indonesian, I can contribute by creating jobs by attracting investment.

Did you get any commitment?

Yes.

How many jobs will this project create?

At least for 35,000 people.

How did the last communication with BP Batam go?

Until now BP Batam is still firmed. My immediate boss is BP Batam, you see.

What is their attitude?

The bottom line is that they haven’t told me to stop, back away, or not to go forward. They only said, at a given time, in line with the schedule, if God willing, they would fulfill their obligations.

You don’t communicate with the Coordinating Ministry for the Economy or BKPM?

BP Batam is my direct boss. BP Batam is an extended arm of the Coordinating Minister for the Economy at the central (government). Now, who signed the contract with me? BP Batam and the Batam City Government, and these two are the ones who can end my contract.

Why are the residents of Rempang protesting this project?

Perhaps it’s just a lack of communication. Maybe the parties cannot understand the project well. Maybe.

Some suspect that a gambling center will be built on Rempang Island...

Any kind of misinformation and misunderstanding can be created. We as Indonesians who adhere to the standing laws and regulations always think rationally first, is it legal or not?

Read the Full Interview in Tempo English Magazine

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