It represents a human being. It is tall, it has hair, and it also has a shell on its genital area.
I can turn into a skyscraper!
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Role in episode
SpongeBob makes the statue by tapping the hammer and chisel once on a block of marble. Squidward, at first, thinks it is beautiful but in order to maintain his self-perception of being the better artist, he puts his nose shape on it to preserve this perception. Later, Monty P. Moneybags thinks that Squidward made the statue and he liked it, apart from the nose Squidward added.