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New battle brews against Beijing: Singapore, Indonesian holiday islands protest China's alumina push -- taking
China's business ambitions are hurting the peace and calm of a cluster of islands that is a popular tourist spot among Singaporeans. A large China-based conglomerate, Nanshan Group, has planned to establish a local unit in the Indonesian islands of Bintan and other archipelagos, sparking protests among businesses that operate there.
Although the company claims to adhere to environmental regulations and has pledged to minimise its ecological impact, the project has drawn renewed attention to the rapid expansion of Chinese raw materials firms in Indonesia.
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However, this will not be the first time Nanshan has built a presence in the Indonesian islands. The company's Gbkek Industri Park already has an industrial park in Bintan's southeast. The Indonesian government has created a special economic zone in the area to lure more investments, and as part of this status, Nanshan enjoys perks like tax waivers for up to 20 years.
What's the plan?
The firm has now announced plans to bring more Chinese firms to the site and build a $6 billion aluminium smelting complex by 2028.
As part of this expansion, there are plans to develop another industrial park on nearby Pulau Poto, a small, low-lying sandy island. According to resort co-owner Andrew Dixon, citing environmental impact documents shared with local business operators, the proposed development includes a steel smelter, an oil refinery, and both multi-purpose and bulk cargo ports.
Gbkek director Santoni told Bloomberg that the Indonesian government has permitted the company to expand its operations to Poto. He said that the firm will build a petrochemical industry on the island as well as build ports.
'We will expand and develop the GB Special Economic Zone, that is also our right. We don't understand what the objections of the resort operator are,' he said.
Why are people protesting?
Dixon has said that industrial operations on Poto 'would not just be devastating for our own business but it's going to devastate the communities in that area.'
According to him, resort operators and landowners, who have been filing objection letters since 2023, submitted their most recent protest to the Indonesian government earlier this month, addressing it to the environment and tourism ministries. A meeting between the involved parties is scheduled for next week.
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'What was once a very rich unique marine environment is now a nearly dead zone,' said Marc van Loo, who owns the resort on the island.
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