Govt assigns PLN to temporarily manage Batang Toru hydropower plant project

Minister of State Secretary Prasetyo Hadi said the government has assigned PT PLN (Persero) to temporarily manage the 510-megawatt Batang Toru hydropower plant project in North Sumatra following the revocation of the operating permit of PT North Sumatra Hydro Energy.

The permit was revoked due to indications of violations related to spatial planning and environmental governance. Prasetyo said the handover to PLN is temporary and intended to ensure strategic economic activities continue. Cooperation with other parties, including private companies, remains possible in the future.

The Batang Toru project license was revoked as part of a broader government action that saw permits of 28 companies withdrawn following deadly floods that hit North Sumatra, Aceh, and West Sumatra last year.

Read also : Govt suspends operations of firms in Batang Toru Basin after deadly floods

The Batang Toru project is owned by North Sumatra Hydro Energy, a joint venture of PT PLN Nusantara Power (25%), PT Dharma Hydro Nusantara (52.82%), and Singapore-based Fareast Green Energy Pte Ltd (22.18%).

The project carries an estimated investment of about Rp21 trillion (approximately USD 1.3 billion) and was originally expected to reach commercial operation in late 2026.

Batang Toru is considered a key renewable energy project to strengthen the Sumatra grid, where electricity demand is rising, including from industrial users such as PT Indonesia Asahan Aluminium (Inalum), which requires around 406 MW for its planned smelter expansion in Kuala Tanjung.

Editing by Alexander Ginting