Permit revoked, but construction goes on: Indonesia pushes ahead with Batang Toru hydropower project

In a strange twist of events, Indonesia’s energy authorities have confirmed that construction of the Batang Toru hydropower project in North Sumatra will continue and remains targeted to reach commercial operation in October 2026, despite the project developer recently losing its operational permit and undergoing an environmental audit.

The Ministry of Energy and Mineral Resources said the 510-megawatt Batang Toru hydropower plant being developed by PT North Sumatera Hydro Energy will proceed while the environmental review process is carried out by Ministry of Environment and Forestry of Indonesia.

Eniya Listiani Dewi, Director General of New, Renewable Energy and Energy Conservation at Ministry of Energy and Mineral Resources of Indonesia, said as quoted by Katadata that the  construction activities have not been halted and the government hopes the project can meet its October 2026 commercial operation date (COD).

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The Batang Toru project owner was among 28 companies whose operational permits were revoked earlier this year following allegations that some projects had contributed to flooding and landslides in parts of Sumatra. According to the ministry, the environmental audit is part of a broader evaluation and does not automatically suspend physical construction.

The hydropower plant was initially scheduled to begin trial operations in December 2025 or January 2026, but testing was delayed after flooding and landslides affected the project area.

The government considers Batang Toru a key contributor to Indonesia’s renewable energy expansion.

Editing by Alexander Ginting