Construction of a $4.2 billion worth power plant in Batang, Central Java, is set to be completed in 2020, Bhimasena Power Indonesia spokeswoman said, as quoted by Antara news agency.
The project on a 226-hectare plot in Ujungnegoro, Ponowareng and Karanggeneng villages has been opposed by local residents and farmers, whose workplaces will be affected by land acquisition.
Bhimasena Power Indonesia (BPI) spokeswoman Ayu Widianingrum said the company believed “the construction of the $4.2 billion facility will be completed as scheduled,” in 2020.
The 2,000-megawatt power plant will be connected to the Java-Bali power grid.
State utility company Perusahaan Listrik Negara (PLN) will buy electricity generated by the plant under a 25-year power purchase agreement.
Ayu said the land acquisition disputes have already been settled.
BPI is a joint venture between Japan’s Electric Power Development, known as J-Power, and Adaro Power controlled by Indonesian coal miner Adaro Energy and Japan’s Itochu Corporation.
According to Ayu, the Batang plant, which is reportedly going to be the biggest plant in Southeast Asia, will use the latest environment-friendly technologies.
Japan Bank for International Cooperation and a syndicate of international banks provide financial support for the project.
After 25 years, under the so-called “build, operate, own and transfer” scheme, the plant’s ownership and assets, including the land, will be transferred to PLN.