Housing Construction for Relocated Rempang Residents Hit a Snag After Budget Cuts

March 19, 2025 | 03:25 pm

TEMPO.CO, Batam - The construction of houses to relocate the residents affected by the National Strategic Project (PSN) Rempang Eco City in Tanjung Banon Village is in jeopardy due to the Prabowo government’s budget cut policy. Around 500 houses have yet to be built.

Minister of Transmigration, Iftitah Sulaiman, revealed the fact during a working visit to Batam City on Tuesday, March 18, 2025. "The Public Works’ residential complex is affected by the budget cuts, so around 400 to 500 houses are not yet developed,” he told media crew.

Despite that, he said, the ministry strives to address the problem, after previously resolving the issue revolving the house ownership certificates for the relocated Rempang residents. 

Iftitah admitted to preparing a budget of Rp70 billion to help with the construction. When asked about the source of the budget, whether for the construction of the houses or the implementation of local transmigration schemes on Rempang Island, Iftitah said the budget comes from the Ministry's Additional Budget Allocation (ABT). However, he has not been able to confirm the exact amount of the budget as of now.

"I am also seeking permission from the Coordinating Ministry whether there will be a collaboration with the Ministry of Marine Affairs and Fisheries (KKP). So, the funding comes from the government. If, for example, the KKP has already allocated funds, we will hold off, and if not, we will disburse the funds," Iftitah said.

At the same time, the Chair of the Integrated Team of Rempang Eco City, Sudirman Saad, refused to comment on the delay in the residential construction. Sudirman said he no longer deals with the issues of Rempang Eco City. "I cannot speak about it anymore as I’m no longer a deputy. I’m not authorized,” Sudirman Saad told Tempo.

Sudirman previously served as the Deputy of Zone Management and Investment at BP Batam, but was reassigned as the Deputy of Strategic Policy and Licensing on March 13.

Meanwhile, from Tempo's observation on Monday, March 10, 2025, the construction of relocation houses in Tanjung Banon Village on Rempang Island was still ongoing. Several workers were still working, including the construction of roads, land preparation, and house unit construction.

At least 350 houses are currently under construction. Director of PT Lestari Nauli Jaya (LNJ) Batam Branch, Bondan Budiman, said that there are already over 100 habitable houses.

Looking at the development map, the second phase will proceed with 150 houses, adjacent to the first phase of 350 houses. However, there is no visible work in that area. This area is targeted to build 900 units of type 45 relocation houses.

Editor’s Choice: Rempang Residents Urge Prabowo to Cancel Eco City Project

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