Huge electricity projects threatened by forestry permit

Two huge power plant and dam projects may suffer delays after the Minister of Forestry issued a July 8 circular urging governors, regents, mayors, and head of regional offices of the ministry to postpone the issuance of all forestry permits, Kontan reported on Monday.

Dedy S. Priatna, Deputy for Infrastructure Sector at the National Development and Planning Agency (Bappenas) said that three infrastructure projects with combined investment of Rp 20 trillion may run aground because they are located in forest areas, which require the forestry permit.

The three are the 1,000 MW Upper Cisokan hydro power plant project in West Bandung Regency, West Java, with planned investment of Rp 13 trillion. Forestry permit for the use of 600 hectares of forest areas for the project will expire on October 28 of this year. ?With the issuance of the circular, there is big possibility the project will be delayed because the permitting process will be delayed,? Dedy said.

The second is the Jatigede Dam project in West Java worth Rp 4 trillion. The Minisry of Forestry has yet to issue the forestry permit for the project.

The third is the Asahan III hydro power plant project worth Rp 2.7 trillion.

Meanwhile, Hadi Daryanto, Secretary General of the Ministry of Forestry, denied suggestion that the issuance of the circular would cause delay in the implementation of the aforementioned projects as the permitting process is still on going. ?We?ll guarantee the implementation of projects that require forestry permit,? he said. (*)