Jawa Tengah power station (Central Java Power Project)

Jawa Tengah power station (also known as the Centra Java Power Project) is a proposed 2000-megawatt (MW) coal-fired power station under development by PT Bhimasena Power Indonesia (BPI). The project is planned for Pemalang in Central Java, Indonesia.

Location
The map below shows the location of Pemalang, the approximate location where the plant will be built.

Background on Plant
In October 2011 two Japanese companies (utility J-POWER and Itochu, a conglomerate with major coal interests) teamed up with Indonesia-based Adaro Power (a subsidiary of Adaro Energy) to build a large coal-fired power plant using advanced ultra-supercritical technology. The three companies formed PT Bhimasena Power Indonesia to operate the plant, with power being sold to PT Perusahaan Listrik Negara (PT PLN), Indonesia's state-owned utility. Originally, the plan was for the first 1,000 MW unit to begin operating in late 2016, followed by the second 1,000 MW unit in 2017. If built, it will be the largest coal plant in Indonesia.

High Efficiency Technology and Japan's International Economic Strategy
The project will use ultra-supercritical technology, which offers combustion efficiency of 43 percent. The relative reduction in carbon dioxide emissions provided by the high efficiency of the combustion technology has been cited by Japan's prime minister Shinzo Abe, among others, as an argument for constructing the plant. According to the Nikkei Asian Review, promoting of ultra-supercritical technology as a climate change solution is linked to Japanese government efforts to assist Japanese businesses against Chinese rivals for coveted overseas power plant construction contracts. "We want to make the Central Java project a showcase that will open the door to more projects," said an official at Japan's Ministry of Economy, Trade, and Industry.

World Bank Support
The World Bank's Indonesia Infrastructure Guarantee Fund (IIGF) awarded its first government guarantee of US$33.9 million to the project. The bank also served as the transaction advisor for the project, arranging financing and promoting the project to investors.

Critics accuse World Bank of using "back door means" to skirt restrictions and avoid transparency
All of the World Bank Group’s activities surrounding the Central Java Power Project add up to as much or more involvement than is typically expended for a direct project investment by the World Bank Group. However, because the World Bank Group has approached this project through back door means, i.e., financial intermediaries and off-budget grants for technical assistance, this mega coal project did not have to meet the World Bank Group’s criteria for coal lending, including full consideration of alternatives, internalizing the cost of carbon, and optimizing energy efficiency and conservation measures. Such an approach has also resulted in less international scrutiny and transparency than is typically involved in Bank-supported coal developments.

Environmental Impacts
According to Greenpeace Indonesia, the planned site for the plant is in the Ujungnegoro-Roban coastal area, which is a marine conservation area and was declared an area for development of marine tourism under Government Regulation No. 26/2008. The plant will infringe upon a protected area, in direct contravention of Central Java provincial bylaw No 6/2010 on spatial planning. If construction of this coal plant goes ahead at least five villages in the Batang area will be demolished, and destroy  hundreds of hectares of jasmine, plantations and paddy fields. Arif Fiyanto of Greenpeace Indonesia said, “The planned coal plant will pollute rich coastal fishing waters and threaten the livelihoods of more than 10,000 small-scale fishermen.” Greenpeace also reported that the plant will emit 226 kg of mercury per year.

Opposition
Around 7,000 residents of the five villages affected by the project are strongly opposed to its construction. In addition, a range of environmental and human rights groups have protested the project.

Protest at Japanese embassy (July 22, 2013)
On July 22, 2013, about 150 people protested against the project in front of the Japanese Embassy in Jakarta. The protesters were members of Paguyuban Rakyat Batang Berjuang Untuk Konservasi, supported by Yayasan Lembaga Bantuan Hukum Indonesia (YLBHI), or Indonesia Legal Aid Foundation (YLBHI). According to protesters, the project would heavily impact the livelihoods of thousands of fishermen due to its effects on coral reefs and other environmentally sensitive areas. In addition, the 200-500 acres used by the project would destroy irrigated rice fields and tens of thousands of trees. Among the protesters was M. Ali Tafrihan of Roban village, who reported being jailed for six months as a result of his opposition to the project.

Human Rights Violations
According to Lembaga Bantuan Hukum (LBH) Semarang, a legal aid organization that has been working with residents at the project site, thugs as well as police and members of the military have used intimidation tactics against those who have refused to sell their land.

Delays
In July 2013 Bloomberg reported that the plant was delayed due to difficulties acquiring land, environmental assessments, and local opposition. As a result of the problems, the onset of construction was reportedly postposed by two years, from October 2012 to October 2014. According to a spokesman for J-POWER, 80 percent of land needed for the project had been acquired.

Local landowners could derail project


According to a July 2013 story in the Japan Times, around 50 landowners at the project site were refusing to sell 40 hectares, an amount of land amounting to 20 percent of the land needed to build the project. If the land purchase was not completed by October 6, the sponsors of the project would lose the right to build the project and a new round of bidding would need to be conducted. According to an unnamed Indonesian official, completing the acquisition by the October deadline would be virtually impossible. According to a report in the environmental blog Mongabay, opponents of the plant were disputing government claims regarding the amount of land that had been secured. Roidhi, a resident of Karanggenang, one of the villages affected by the project, told Mongabay that "70 percent of our land still belongs to us." "When you look at the data mentioned by Hatta Rajasa...and Lucy Eko Wuryanto it is very clear that the data mentioned is a mere claim. Each person is reporting different data," said Wahyu Nandang Herawan, a staff member of Lembaga Bantuan Hukum (LBH) Semarang, a legal aid organization that has been working with the community.

Project wins one-year extension
In October 2013, a decree by President Susilo Bambang Yudhoyono revised a regulation that required the project one year after signing its contract to secure financial backing. Following the extension, the Jakarta Post reported that the consortium sponsoring the project and the government "are working on a persuasive approach to win the hearts of local residents." Garibaldi Thohir, president of Adaro Energy, said, "The important thing now is how to approach the community. I myself, along with Pak Ganjar will take part in the socialization program." Ganjar Pranowo is the governor of Centra Java.

Cost Escalation
Originally the project was estimated to cost $3.2 billion. In October 2013, Boy Garibaldi Thohir, president director of Adaro Energy, said that the cost of the project had risen significantly. Boy declined to state an exact figure but said that the total was not more than $5 billion. The cost increases have delayed the financial closing of the project.

Timeline

 * October 2011 - joint venture formed
 * October 2012 - original plan for beginning of construction
 * October 2013 - companies announce that construction would be delayed at least two years due to environmental assessments, local opposition, and difficulties acquiring land.

Project Details

 * Sponsor: PT Bhimasena Power Indonesia (BPI)
 * Parent company: J-POWER (Electric Power Development) - 34 percent; Adaro Power - 34 percent; Itochu - 32 percent
 * Recipient of power: PT PLN
 * Location: Pemalang, Central Java
 * Coordinates: -6.88, 109.38 (approximate)
 * Status: Onset of construction delay; financing not secured as of December 2013
 * Gross Capacity: Unit 1: 1000 MW, Unit 2: 1000 MW
 * Type: Ultra-supercritical
 * Original start date: Unit 1: 2016; Unit 2: 2017
 * Latest projected start date: Unit 1: 2018; Unit 2: 2019
 * Coal Type: "lower quality"
 * Coal Source: Indonesia
 * Source of financing:

Related SourceWatch articles

 * Indonesia and coal