Peranap power project delayed due to licensing problem

The construction of the minemouth power plant in Peranap, Riau has been delayed due to the lack of a "power allocation permit" from the government, Investor Daily reported on Wednesday.

PLN's director for power generation and primary energy Ali Herman said in Jakarta recently that the power allocation permit for the Peranap power plant had not been issued because the coal-fired power plant which would have a capacity of 2 x 250 megawatt had not been included in the state owned electricity company's national electricity supply plan.

"We hope the license could be issued after the planned construction of the Indonesia-Malaysia power interconnection has been issued," he was quoted as saying.

State owned coal mining company PT Tambang Batubara Bukit Asam (PT BA), the investor of the Peranap power plant, had completed the feasibility study and Amdal environmental analyses for the power project. In addition, PT BA had also signed a power purchase agreement with PLN. (*)