Govt, PLN Reboot Plans for Batang Plant


FEBRUARY 16, 2015

Bogor. The government and state utility company Perusahaan Listrik Negara plan to revisit a 2,000 megawatt power plant project in Batang, Central Java, and speed up development to finish construction by 2018.

PLN president director Sofyan Basir said whoever wins the tender will have to work within the parameters of Law No. 2 of 2012 regulating land procurement for the public interest.

The project was delayed in July last year when Bhimasena Power Indonesia (BPI), the original tender bid winner, declared force majeure due to difficulties it encountered in acquiring land.

Bhimasena is a joint venture between  Adaro Power, Indonesia’s second-largest coal miner, who owns a 34 percent stake; Japan’s Electric Power Development, or J-Power, with a 34 percent share; and conglomerate Itochu.

Procuring land for the project, Sofyan promised, will no longer be an obstacle.

“[The acquisition process] is nearly completed; we still have a few more details to sort out. Once that is done, ground breaking will immediately commence,” he said after a meeting with President Joko Widodo at the Bogor Palace in West Java on Monday. “We hope to break ground next month at the latest.”

According to initial plans for the project, which Bhimasena began in 2011, construction should have reached completion by 2012, with commercial operation slated for 2016.

The project was greeted with criticism and outcry from local residents as well as global environmental group Greenpeace, when it became known that the power plant would threaten the region’s food sovereignty  and accelerate climate change.

Investor Daily