Indonesia expedites massive coal-fired power project

The Indonesian government has set an October deadline for the coal-fired power plant project in Central Java.

The $4 billion power plant, the largest of its kind in Southeast Asia, has been delayed for months due to land acquisition issue, as well as the district government’s refusal to issue a permit allowing the project contractor to bring the necessary equipment and machinery to the construction site.

Hatta Rajasa, the coordinating minister for the economy, announced the establishment of a task force to monitor the construction of the 2x1000-megawatt coal-fired power plant. Hatta made the announcement after meeting with related ministries, local government officials and executives from state-utility firm Perusahaan Listrik Negara.

“It must be done by October,” Hatta said.

Hatta said that the task force will consist of relevant stakeholders, while representatives from the Attorney General’s Office will also join to act as a legal watchdogs for the states, as some issues involve state administration law, the minister said.

One key duty of the task force will be to supervise the access permit, Hatta said.

Adaro Energy, an unit of Indonesia’s second-largest coal miner Adaro, joined Japanese firms Electric Power Development (J-Power) and Itochu to develop the 2,000 MW plant. The initial completion date for the power plant was 2016.

Nur Pamudji, PLN’s president director, said that the power plant will commence operations in 2017, meaning the project has been delayed by about a year.

For more.