About the project
What is it?
The Indramayu coal-fired power plant project is a project proposed by the Indonesian government in 2009 to increase electricity supply for the Java-Bali grid. The project is expected to complete and be ready to operate in 2026.
How big is it?
The project plans to build two 1000 MW Ultra Super Critical (USC) units, The project is going to take 275.4 ha of land.
Who is involved?
PLN, Indonesian state-owned electricity company is the leading actor in implementing the project, and Japan International Cooperation Agency (JICA) has been financing the project.
What has Japan done so far?
Japan has so far supported;
1) preparatory studies (2009-2010)
2) engineering service (E/S) for basic design, tender assistance, construction supervision, environmental monitoring etc. (loan amount is 1,727 mil Yen (USD 15.7 mil))
3) technical cooperation assistance to help PLN develop the land acquisition plan (consulting fee: 17,636,400 Yen or USD 160,330)
Japan is now waiting for a request from the Indonesian government to financially support the construction of the first unit.
Is the project necessary?
The project is not necessary because the Java-Bali electrical grid has excessive power supply. The Indonesian government’s plan also indicates that the reserve margin in the grid will be 30 to 45 % until 2028. Given the severe impact of COVID-19 on economy, growth in electricity demand will also slow down. If the Project is pushed through with JICA’s loan, Indonesian state-owned electricity company Perusahaan Listrik Negara (PLN) or Indonesian government will have to pay back for decades for such unnecessary plant. This means an unreasonable burden on the future generations.