PLN awaits BPI?s response on Batang power project
Friday, September 5 2014 - 01:19 AM WIB
PT Bhimasena Power Indonesia (BPI), a consortium assigned to build a 2x1,000 MW coal-fired power plant in Batang Regency, Central Java, is expected to soon make a decision on how to deal with the difficult land acquisition process for the project.
President Direct of state-owned electricity company PT PLN, Nur Pamudji, said that he would meet with BPI on September 6 to talk about the company?s response to the recent proposal made by the Coordinating Minister for the Economy Chairul Tanjung.
Chairul proposed that due to the protracted delay in completing the acquisition of the remaining necessary land for the giant power plant project, BPI can either move the project to other area in Central Java where land acquisition is expected to be not a problem, or keep the project in Batang but let PLN takes over the responsibility in acquiring the remaining land requirement.
As earlier reported, 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 due to various problems including owners demanding excessively high price and protest from environmental activists.
Nur Pamudji said that if PLN takes over the acquisition process, it would use Law No 2/2012 on land procurement for public infrastructure facilities as the legal umbrella in forcing land owners to give up the land at market price.
The BPI consortium comprises of IDX-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. It is seen as a crucial project to help avoid the anticipated power crisis in 2018.
Editing by Reiner Simanjuntak