PT Bhimasena Power Indonesia Amending the Power Purchase Agreement with PLN for Batang Power Plant 2 x 1.000 MW, Central Java

 

Legal issues related to the land acquisition has been resolved with the issuance of the decision of the Supreme Court published on February 29, 2016 and which not to accept the lawsuit hence the Location Determination permit issued by Central Java Governor remains valid. Thelawsuit on the issuance of the Location Determination from one of the land owners, which then proceed with cassation process to the Supreme Court. Due to the lengthy judicial process, activities related to the land is postponed or delayed, and it requires some time for its  completion. For that PLN grant an extension of time to meet the deadline Financing (RFD). President Director of BPI, Mohammad Effendi explained that it continues to have discussions with PLN and stakeholders on this matter. "Government support is positive and cooperative in this matter, because we are equally focused on the goal of this project is in the national interest."

 

Currently the pre-construction process has been running with land clearing until the land is ready to use on construction phase. Meanwhile the construction process is expected to be completed in 2020. Previous area of land to be used for the power plant has also been fenced on March 24th. "Fencing objective is that the construction work can be done with focus and does not interfere with the activity of the communities.” Effendi explained further. The fencing was done entirely in the area of Batangpower plant designation.

 

Procurement process for land area of 226 hectares that could be an obstacle for four years now has been completed properly. Consignment process by implementing the Law No. 2/2012 on 12.5 ha of remaining land from total of 226 ha required land has been resolved, and the land handover has been transferred from BPN to PT PLN (Persero) on December 8th, 2015. As a follow-up, PT PLN (Persero) has installed information boards that announced the ownership of the land by PT PLN (Persero), on January 11th, 2016 at the location of the land that has been acquired. PT PLN (Persero) has been entrusted consignment funds in Batang district court. The land owner can take the consignment fund in Batang District Court.

 

Related to the environmental issues, BPI reaffirmed its commitment to use the Ultra Super Critical (USC) technology with steam conditions and flue gas treatment systems which minimize emissions/dispersions towards the environment so that environmentally friendly. Various required permits had been met. "We have been through a series of certification and licensing process. EIA assessment process involving experts who conducted a number of analyzes and we put it in the EIA documents our commitment to the community and the government. Its implementation is continually monitored and evaluated regularly,"explained Effendi further.

 

Furthermore, Effendi emphasizes BPI’s commitment to the social environment issue, especially around the area of the PLTU Batang. "We live together, the power plant also for national, so we realized that the community is an important part of the power plant that have to be considered," said Effendi. Therefore, BPI is committed to actively participate in various sustainable community development programs. "We have a number of development programs that already running and will continue for example by forming cooperatives and business groups, skills training, and a variety of supporting infrastructure," he said. 

 

The existences of the power plant also not turn off the citizen livelihood. Land replacement for the affected farmer has also been prepared. Meanwhile, the social compensation program has been run is expected to be a temporary solution until a replacement land can be used.

 

For long-term Effendi expect that the presence of PLTU Batang not only support the Government to meet its target of electrification of 35,000 Megawatts (MW) for a period of five years (2014-2019) but also will have a direct impact on the Batang community's economy. "With the presence of the power plant will be a multiplier effect which will emerge a variety of new economic centers and supporting business activity of the plant. So that in the future, we expect the presence of PLTU Batang can provide more benefits to the local and national interests," he added.

 

 

PT Bhimasena Power Indonesia is a joint venture company established by a three-company consortium, between Electric Power Development Co., Ltd. (“J-Power”), PT Adaro Power, which is a wholly owned subsidiary of AE, and Itochu Corporation (“Itochu”).

 

Central Java Power Plant (CJPP) is the first Public-Private Partnership (“PPP”) infrastructure project in Indonesia and also part of the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (“MP3EI”) in that it will be the locomotive of growth in the Java Economic Corridor. The CJPP will incorporate the more environmentally friendly and efficient Ultra Super Critical technology.