Indonesian power plant delayed 1 year due to slow permit issuance

It will be one of Asia’s largest.

But Adaro Energy will delay the completion of this coal-fired power plant by a year because the company is still waiting for a local government license.

Adaro Energy joined Japanese firms J-Power and Itochu Corp. to develop the 2,000 megawatt plant in Batang, Central Java. The initial completion date for the power plant was set for 2017.

The $4 billion project’s completion is being held back by the lack of a district construction permit, Garibaldi said.

The process is ongoing, and is at hearing stages for the environmental impact assessment and land acquisition.

“We [the consortium] have requested a one-year extension from state utility firm Perusahaan Listrik Negara,” said Garibaldi Thohir, president director of Adaro.

PLN president director Nur Pamudji said the company understood the problem faced by Adaro and its partners.

“Actually, the contract includes a provision that states that a one-year extension is possible should factors that the developer cannot control occur,” Nur said.

He added that the Batang district head was very slow in issuing the permit for the construction.

“Due to this slow issuance of the permit, everything after that, like the environmental impact assessment, was also delayed,” he added.

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