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Indramayu Coal Power Plant, West Java, Indonesia


Description:

The construction of the 330 x 3 MW coal-fired power plant (PLTU) in Indramayu started in 2007, and four years later it was put in operation. While being operated by the government-owned company PT Perusahaan Listrik Negara (PT PLN), it was financed through a loan from a consortium of public and private lenders led by Bank of China [1]. Surrounding communities have suffered severe livelihood losses resulting from the operations of the plant, and the preceding construction process. These include respiratory diseases, diminishing yields and reduced catches of fish and shrimp. Farming and fishing have historically been the most important income-bringing activities for the residents of Indramayu, but these have become increasingly unviable due to pollution and large-scale acquisition of productive farmland [2].

In the end of 2015, the Indonesian president announced that the Indramayu facility would be expanded by adding another coal-fired plant (PLTU II) with a capacity of 2 x 1000 MW just adjacent to the existing plant (PLTU 1). The local residents and supporting NGOs claim the process of public consultation to have been inadequate, since not all affected residents were invited, which is a legal requirement. Further, the Land Aqcuisition Plan (LAP) was not prepared until after the acquisition process had started, contradicting principles of public participation and transparency [3]. The construction of the plant is currently prepared for, and a loan has been granted to the Indonesian Government by the Japan International Development Agency (JICA) that will cover the expansion costs [3] [4]. Mobilization against the PLTUs have taken various forms. Much of the resistance has been organized by the local group Jaringan Tanpa Asap Batubara Indramayu (JATAYU) (in English: Indramayu Coal Smokeless Network). In 2017, JATAYU filed a lawsuit against the environmental permit granted for PLTU II, motivated by the increased health risks it would entail, as well as the lack of community consultation. The administrative court ruled in favour of the community, and the permit was revoked [3]. However, both the High Court and the Supreme Court ruled in favour of the company. However, JATAYU is now in the process of filing a verdict review [2]. Many protest actions in response to the project has been seen locally; at the construction site and at the PLN office in Bandung. Some villagers have also travelled to Jakarta to protest outside the presidential office and the Japanese embassy [2]. In 2017, some JATAYU members joined with a few residents from the Cirabon Regency and representatives from The Indonesian Forum for Environment (WALHI) to protest outside the Japanese Government in Tokyo [5]. In Tokyo, a petition signed by 280 CSOs from 47 countries was submitted in, which appealed to JICA not to grant the Indonesian Government a loan for the construction of neither the new 1000 MW plant in Cirebon, nor the one in Indramayu [6]. In April 2019, another coalition of JATAYU and WALHI members went to Tokyo once again to submit yet another letter to the Japanese Government, asking for a withdrawal of funds [2][7]. To calm on-site protests, PT PLN has hired a military officials and police officers [2]. Further, criminalization of activists has been seen; in December 2017, the three Indramayu residents Sawin (50), Sukma (35) and Nanto (41) were arrested, accused of having insulted the Indonesian flag by raising it upside down in a protest. After having been held for 23 hours, all three were released. However, in September 2018 they were detained again, and sentenced to between 5 and 6 months in prison.  Further, four villagers were detained and later sentenced to 6 months in prison for involvement in acts of violence against one of the sub-contractors of PT PLN [2] [3].

PLTU II is planned to commence its operations in 2026, and the construction is planned to start in 2022 [8]. As such, the project is still in the preparation phase, awaiting all necessary permits to be granted. However, as early as in 2018, the company illegally started the land preparation for the project. In April 2018, WALHI submitted a complaint to the local environment authority, which resulted in PT PLN receiving a warning, and were asked to wait for the permit to be granted. However, the company continued delivering construction materials to the area despite this [2].

In June 2022, Japan announced it would stop providing yen loans for the construction of coal-fired electricity plants in Indonesia [9]. The policy reversal regarding the construction of the Indramayu plant is considered part of Japan's efforts aimed at accelerating a global phase-out of coal [9].

Basic Data

Name of conflict:Indramayu Coal Power Plant, West Java, Indonesia
Country:Indonesia
State or province:West Java
Location of conflict:The villages Sumuradem, Mekarsari, Patrol Baru, and Sumur Adem in sub-districts Sukra and Patrol
Accuracy of locationHIGH (Local level)

Source of Conflict

Type of conflict. 1st level:Fossil Fuels and Climate Justice/Energy
Type of conflict. 2nd level:Thermal power plants
Specific commodities:Electricity
Coal

Project Details and Actors

Project details

PLTU I: 330 x 3 MW

PLTU II: 1000 x 2 MW

Project area:PLTU I 83 ha, PLTU II 275.4 ha
Level of Investment for the conflictive projectPLTU I: 804 million, PLTU II: 2 billion
Type of populationRural
Start of the conflict:2007
Company names or state enterprises:PT Perusahaan Listrik Negara from Indonesia
PT Penta Adi Samudra from Indonesia - EPC contractor
China National Electric Engineering Corporation (CNEEC) from China - EPC contractor
China National Electronics Import-Export Corporation (CEIEC) from China - EPC contractor
Relevant government actors:The Government of the Republic of Indonesia
The Government of China
The Government of Japan
International and Finance InstitutionsJapan International Cooperation Agency (JICA) (JICA) from Japan
Bank of China (BOC) from China
BNP Paribas (BNP) from France
China Construction Bank (CCB) from China
China Development Bank (CDB) from China
ICBC (ICBC) from China
Societe Generale (SGA) from France
China Citic Bank from China
ANZ Bank group Australia (ANZ) from Australia
Bayerische Landesbank (BayernLB) from Germany
Crédit Agricole Corporate and Investment Bank from France
Credit Suisse (CS) from Switzerland
ING Bank NV from Netherlands
Natixis from France
Royal Bank of Scotland (RBS) from United Kingdom
WestLB from Germany
Fortis Bank from Netherlands
Environmental justice organizations (and other supporters) and their websites, if available:Friends of the Earth Japan, http://www.foejapan.org/en/
WALHI Indonesia, https://walhi.or.id/
Japan Center for a Sustainable Environment and Society (JACSES), http://jacses.org/en/
Kiko Network, https://www.kikonet.org/
350.org Japan, https://world.350.org/ja/
Jaringan Tanpa Asap Batubara Indramayu (Indramayu Coal Smokeless Network) (JATAYU)

Conflict & Mobilization

IntensityMEDIUM (street protests, visible mobilization)
Reaction stagePREVENTIVE resistance (precautionary phase)
Groups mobilizing:Farmers
International ejos
Local ejos
Neighbours/citizens/communities
Fisher people
Forms of mobilization:Development of a network/collective action
Involvement of national and international NGOs
Lawsuits, court cases, judicial activism
Objections to the EIA
Street protest/marches
Strikes

Impacts

Environmental ImpactsVisible: Air pollution, Biodiversity loss (wildlife, agro-diversity), Surface water pollution / Decreasing water (physico-chemical, biological) quality, Global warming
Health ImpactsVisible: Other environmental related diseases
Other Health impactsrespiratory diseases: bronchitis
Socio-economical ImpactsVisible: Displacement, Loss of livelihood, Loss of traditional knowledge/practices/cultures, Land dispossession, Militarization and increased police presence

Outcome

Project StatusStopped
Conflict outcome / response:Criminalization of activists
Court decision (failure for environmental justice)
Under negotiation
Violent targeting of activists
Project cancelled
in December 2017, the three Indramayu residents Sawin (50), Sukma (35) and Nanto (41) were arrested, accused of having insulted the Indonesian flag by raising it upside down in a protest
Proposal and development of alternatives:WALHI and JATAYU demand the construction of PLTU II to be stopped; that JICA withdraws its investments in the facilty, and that the Indonesian government takes on a transition to renewable energy. Further, they demand that the imprisoned villagers to be released immediately; referring to Article 66 Law o 32/2009 Concerning Environment, according to which any Indonesian citizen who fights for a good and healthy environment should not be prosecuted (Widianto 2018; WALHI, 2019).
Do you consider this an environmental justice success? Was environmental justice served?:Yes
Briefly explain:In June 2022, Japan announced the stop of financing the expansion of Indramayu CFPP. This is considered part of Japan's efforts to phase out coal financing.

Sources & Materials

Juridical relevant texts related to the conflict (laws, legislations, EIAs, etc)

Law No. 2 of 2012 concerning land acquisition for development in the public interest

Law No. 32/2009 on Environmental Protection and Management

Law No. 2 of 2012 concerning Land Acquisition for Development in the Public Interest

PP27/2012 concerning Environmental Permits and Ministerial Direction LH17/2012 concerning Guidelines for Community Involvement

Law No. 32/2009

PP27/2012 concerning environmental permits and ministerial direction LH17/2012 concerning guidelines for community involvement

[1] Aid Data (2017). Chinese and International Financial Institutions loan $592 million to Indonesia for Indramayu Power Plant (Fast-track program).
https://china.aiddata.org/projects/38606

[2] WALHI (2019). Re: Request No More Japanese Support and Loan in Any Kind of Form for Indramayu Coal-fired Power Plant Expansion Project, West Java, Indonesia.
http://www.foejapan.org/en/aid/pdf/190423.pdf

[2] WALHI (2019). Re: Request No More Japanese Support and Loan in Any Kind of Form for Indramayu Coal-fired Power Plant Expansion. Project, West Java, Indonesia.
http://www.foejapan.org/en/aid/pdf/190423.pdf

[3] Widianto, W. (2018). Indramayu farmers against coal power. Chain Reaction, No. 134, Dec 2018: 16-17. [pdf]
https://search.informit.com.au/fullText;dn=160398321407172;res=IELHSS

[4] JICA (2019). Indramayu Coal Power Plant Project (I).
https://www.jica.go.jp/english/our_work/social_environmental/id/asia/southeast/indonesia/c8h0vm00009r3df6.html

[5] 350.org (2017). Indonesian farmers and fishermen deliver a clear message to Japan: Stop funding dirty coal.
https://350.org/indonesian-farmers-and-fishermen-deliver-a-clear-message-to-japan-stop-funding-dirty-coal/

[6] FoE Japan (2017). Cirebon and Indramayu Coal-fired Power Plant Projects, West Java, Indonesia.
http://www.foejapan.org/en/aid/170323.html

[7] No Coal Japan (2019). Indonesian Farmers Visit to Japan to Demand the Japanese Government and JICA to Stop Coal Finance.
http://www.nocoaljapan.org/indonesian-farmers-visit-japan-to-demand-japan-stop-coal-finance/

[8] KPPIP (2019). Indramayu Coal Fired Steam Power Plant.
https://kppip.go.id/en/priority-projects/electricity/pltu-indramayu/

[9] Shoko Oda and Ryotaro Nakamaru, "Japan to end financing of Asian coal projects", Financial Review, 23 June 2022.
https://www.afr.com/companies/energy/japan-to-end-financing-of-asian-coal-projects-20220623-p5aw63

PT PLN (2017). Indramayu Coal-fired Power Plant Project: Land Acquisition and Resettlement Action Plan (LARAP).
https://www.jica.go.jp/english/our_work/social_environmental/id/asia/southeast/indonesia/c8h0vm00009r3df6-att/c8h0vm0000c2ym9y.pdf

Gres News (2016). Locals Protest Indramayu II Steam Power Plant Project.
http://gres.news/news/economy/103171-locals-protest-indramayu-ii-steam-power-plant-project/0/

Meta information

Contributor:ICTA-UAB
Last update22/05/2023
Conflict ID:3224

Images

 

A map of the project area, showing the affected villages: Sumuradem (green), Mekarsari (yellow) and Patrol Bari (pink)

Source: https://www.jica.go.jp/english/our_work/social_environmental/id/asia/southeast/indonesia/c8h0vm00009r3df6-att/c8h0vm0000c2ym9y.pdf (p. 3)

Cirebon & Indramayu residents protesting in Tokyo, together with representatives from WALHI, FoE Japan, JACSES, Kiko Network, and 350.org Japan

Source: http://www.foejapan.org/en/aid/170323.html

PLTU I

Source: http://gres.news/news/economy/103171-locals-protest-indramayu-ii-steam-power-plant-project/0/