Paradise under threat in Indonesia's Riau islands

The picturesque Riau islands are under threat from heavy industry

A pristine tropical holiday island close to Singapore is under threat from industrial development.

The sandy Indonesian Riau island of Pulau Poto is home to a plethora of wildlife, including endangered species such as the Sunda pangolin and Nicobar pigeon, as well as hawksbill and green sea turtles who nest on the island.

But a large China-based conglomerate now plans to build an industrial park on the island.

Pulau Poto is a small low-lying island and part of the Indonesian Riau chain of islands. The Riau archipelago includes the popular holiday spot of Bintan island as well as smaller private island resorts, offering a tempting mix of sandy beaches, water sports and luxury accommodation. The islands are popular both with Singaporeans and holidaymakers from further afield.

The proposed industrial park on Pulau Poto is being protested by the local community as well as resort operators who fear environmental damage will destroy the future of the area as a tourist destination. Resort operators on Bintan, a short ferry ride from Singapore, and from nearby private islands are protesting the plans which have been brought by a local unit of Nanshan Group, one of China’s largest aluminium companies. 

Nanshan’s PT Gbkek Industri Park already manages an industrial park to the southeast of Bintan. Now, Nanshan plans to build a US$6 billion aluminium smelting complex by 2028 which will involve the creation of the proposed industrial park on nearby Pulau Poto. Environmental impact documents distributed to local businesses are said to outline plans for a steel smelter, an oil refinery and multi-purpose and bulk cargo ports.

In a statement to Bloomberg, Nanshan Aluminium said it follows all applicable ESG standards and is committed to operating “responsibly and transparently”. Gbkek Industri published an environmental impact assessment report earlier this year which states it plans to create a green corridor, a marine pollution emergency response system and drainage channels to limit sedimentation as part of the Pulau Poto project. However, resort operators on Bintan are reporting significant environmental damage from the existing industrial park on Bintan, including bauxite residue leaking into the ocean and coating inner tidal flats, destroying local marine life.

According to Andrew Dixon, who owns and manages the luxury private island resorts of Nikoi and Cempedek in the area, the plans would be devastating for both his business as well as local communities. He said fishermen are already experiencing a reduced catch as a result of existing operations. 

He told Bloomberg: “I’m not saying that Indonesia shouldn’t develop their resources and build these types of facilities, just don’t go and build it in an area that is pristine, where there are existing businesses that have been established for some time and where there are communities that have been established for some time.”

The full Bloomberg report can be accessed here.