Giant power plant project hampered by land acquisition
Saturday, September 26 2015 - 04:24 AM WIB
The paper quoted Dian Setiabudi, a senior official at the Cilacap Regency administration, as saying that differences between the two institutions on which law to be used in carrying out the land acquisition will cause delay in the development of the power plant project.
Dian said that the BPN insists on using Law No 2/2012 on land procurement for the development public facilities, which stipulates that the land acquisition for facilities such as power plant must be carried out by the government, and that the government retains ownership of the land.
Meanwhile, the MEMR holds on to Law No 30/2009 on electricity, which allows the private investor to own the land for the project.
The government has appointed Jawa Energi to develop the 5,000 MW coal-fired power plant to be located in Bunton Village, Adipala District, Cilacap. The project, with total investment estimated at Rp 90 trillion, will be develop in two stages, the first 2x1000 MW, and the second 3x1,000 MW.
Budi Santoso, an official at the Cilacap investment office, said that the project requires about 120 hectares of land. He said that the project is expected to be completed in seven years, with construction initially expected to start in 2015. ?According to the plan, construction of the first stage was expected to start in 2015, but it?s likely to be delayed,? he said.
The paper did not get comments from PT Jawa Energi. (*)