BPI fences land for Batang power plant project

After struggling to complete land acquisition for about four years, PT Bhimasena Power Indonesia (BPI) began on Thursday installing fence panels around the 226-hecatare land required for the planned 2x1,000 coal-fired power plant project in Batang, Central Java, Kompas reported.

Top officials of BPI and Batang regency administration witnessed start of the the fencing work, the paper said. Of the total 226-ha land requirement, the acquisition of 12.5-ha had to go through court process due disagreement with land owners over the price. This is in line with Law No 2/2012 on land acquisition for public facilities.

BPI President Director Mohammad Effendi denied suggestion that there has been human rights violation in the land acquisition process, pointing out that the farmers have received proper compensation for their land.

As part of the compensation, the famers obtain new plot of land, and that until their crops start production, BPI will provide monthly cash compensation to the total 752 farmers.

Effendi said that the installation of the fences around the land, symbolizes the company?s readiness to start construction of the mega power project.

The paper said that construction process is expected to be completed within 48 months.

BPI is a consortium comprising of PT Adaro Power, a subsidiary of IDX-listed coal mining firm PT Adaro Energy Tbk, Itochu and J-Power. Effendi said earlier this year, financial close for the Batang power plant project is expected in June and that construction process to be completed in 2020. (*)