Govt drops plan to move Batang power project

The government has dropped an earlier plan to move the giant Batang power plant project in Central Java developing it in a new location would take longer time to complete while the country is facing an imminent threat of electricity crisis in 2018, Koran Tempo reported on Thursday.

The paper quoted Director General of Electricity Jarman as saying that the 2x1,000 MW Batang coal-fired power plant project would be developed in the initial location of Batang Regency in Central Java.

He said that the government has assigned the state-owned electricity company PLN to take over the process of land acquisition for the US$4 billion project. He said that after two years of ?socialization,? the PLN can apply the Law No 2/2012 on land procurement for public infrastructure projects to speed up the land acquisition process.

The Batang power plant project has been hampered by land acquisition problem as some villagers reportedly have demanded excessive price for the land.

Environmental activists and other villagers have also protested the project on fears of damage to the local environment and agricultural land.

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. Coordinating Minister for the Economy Chairul Tanjung proposed in August of this year to move the project to another location.

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. (*)