Batang power plant project may be moved to another location

Coordinating Minister for the Economy Chairul Tanjung said that the giant 2x1,000 MW coal-fired power plant in Batang Regency, Central Java, may be moved to another location if the local government could not complete the land acquisition process soon, reports said on Thursday.

This was said by Chairul during a meeting with Central Java Governor Ganjar Pranowo on Wednesday. Chairul declined to disclose the alternative location, fearing speculators will drive up the land price.

Chairul, however, said that if land acquisition can be completed soon, the giant US$4 billion power plant project will still be developed in Batang.

Of the total 226 hectares of land required for the development of the Batang coal fired power plant, about 20 ha has yet to be acquired due to various problems including owners demanding excessively high price and protest from environmental activists.

The power plant project, dubbed to be the largest in Southeast Asia, is seen crucial to help avoid future electricity crisis in Java, was initially projected to be completed in 2016, but then coordinating minister for the economy Hatta Rajasa said that the completion of the project had been postponed to 2018 due to various problems including land acquisition.

The Batang power plant will be built by PT Bhimasena Power Indonesia, a consortium comprising Jakarta listed coal giant PT Adaro Energy Tbk, and Japan?s J-Power Energy Power Development Co. Ltd. and Itochu Corp. The power plant will sell electricity it produces to state-owned electricity company PT PLN under a 25-year-contract.

Chairul said that he has discussed the possibility of moving the power plant project to another location with the investors. (*)