Riau-1 power station
|This article is part of the CoalSwarm coverage of Indonesia and coal|
Riau-1 power station, also known as BlackGold Indragiri Hulu power station, is a proposed 600-megawatt (MW) coal-fired power plant in Riau Province, Indonesia.
The map below shows the location of Indragiri Hulu regency, the approximate location where the plant would be built, in Riau Province.
In November 2014, it was reported that Indonesian-based coal mining company The BlackGold Group, along with Engineering company Burns & McDonnell, had announced that they intended to build a mine-mouth power plant at BlackGold's coal concessions in Indragiri Hulu, Riau. The company said that it would develop a feasibility study for a 2 x 300 MW plant.
On May 21, 2015, BlackGold Natural Resources entered into an MoU with PT Nari Indonesia Forever under which PT Nari will provide design, technology, finance and technical assistance in the planning and feasibility study for the project.
In December 2015 BlackGold announced an agreement with China Huadian to invest in a joint venture project consortium company for the plant, with equity interests of 40% and 60%, respectively.
On June 9, 2017, BlackGold released a statement reporting that PLN will be inviting developers for the signing of six mine-mouth power plants during the month of June. BlackGold CEO stated, "We are hopeful that we will be appointed and look forward to kick-start the project soon."
In September 2017 PT Samantaka Batubara (PTSB) signed a Heads of Agreement to form a new consortium with PT Pembangkitan Jawa-Bali (PJB), a wholly-owned subsidiary of PLN, and China Huadian Engineering Co Ltd (China Huadian) to construct, develop and operate the Riau-1 Project.
Despite the October 2018 and December 2018 bribery convictions of officials involved with Riau-1, the project appears in the 2019-2028 RUPTL with a completion date of 2028.
Bribery allegations suspend project
PLN has suspended work on the proposed 600 megawatt (MW) Riau I plant after the Corruption Eradication Commission (KPK) arrested House of Representatives member Ms Eni Maulani Saragih. KPK said Eni was a suspect in an investigation into an alleged US$333,629 bribe paid by Johanes Budisutrisno Kotjo, a shareholder in the Singapore-headquartered BlackGold Natural Resources, a coal company involved in the project. KPK alleges that Eni, who was a member of a parliamentary committee that oversees energy, was bribed to help facilitate the approval of the project. BlackGold insist Kotjo’s role as a consultant ended in June 2018 and that the company’s directors were “not involved whatsoever” in the attempted bribery. KPK has also raided PLN’s offices and seized documents.
In October 2018 Johannes Kotjo was found guilty of bribing Representative Eni Maulani Saragih to obtain the Riau-1 PLTU project, and in December 2018 Koto was sentenced to serve two years and eight months in prison and pay a fine of Rp150 million, which could be replaced with an additional three months in prison.
In June 2019 the President Director of PLN, Sofyan Basir, resigned after being arrested on May 27 by Indonesia’s Corruption Eradication Commission (KPK) as a suspect in its investigation into bribes paid by a shareholder of Blackgold Natural Resources to gain approvals for the proposed 600 MW Riau 1 coal plant. The KPK has also questioned Indonesia’s Energy and Mineral Resources Minister, Ignasius Jonan, over his knowledge of the approvals for the Riau 1 coal plant. In November 2019 a panel of judges declared Basir not guilty of bribery in the case and ruled that he was not aware of the bribery scheme that resulted in the convictions of two other PLN employees. Despite the not guilty verdict, the newly appointed Minister of State-Owned Enterprises (BUMN) Erick Thohir said he would still study the sustainability of the project.
- Sponsor: PT Samantaka Batubara; PT Pembangkitan Jawa-Bali
- Parent company: BlackGold (40%), China Huadian (60%)
- Location: Indragiri Hulu regency, Riau province, Indonesia
- Coordinates: -0.35, 102.533056 (approximate)
- Status: Announced
- Gross Capacity: 2 x 300 MW
- Projected in service: 2028
- Coal Type:
- Coal Source: Indragiri Hulu, Riau
- Source of financing:
Articles and resources
- "The BlackGold Group and Burns & McDonnell Embark on the Development of a Mine Mouth Power Plant in Sumatra, Indonesia," ACCESSWIRE, November 18, 2014
- "Non-Binding Memorandum of Understanding - Planning and Feasibility Study of a Power Plant Project," Blackgold Natural Resources Limited, accessed 22 May 2015
- "BlackGold: 40% Stake In Coal-Fired Power Plant Joint Venture," BlackGold, Dec 28, 2015
- "PT PLN PERSERO TO COMMENCE PROCESS OF SIGNING 6 POWER PURCHASE AGREEMENTS FOR MINE-MOUTH POWER PLANTS," BlackGold press release, 9 June 2017
- Investor Presentation, BlackGold Natural Resources Limited, October 2017
- RENCANA USAHA PENYEDIAAN TENAGA LISTRIK PT. PLN (PERSERO) 2019 - 2028, PT PLN Persero, February 2019
- PLN suspends power plant project over graft case, The Jakarta Post, Jul. 17, 2018
- Riau-1 PLTU Case; Johannes Kotjo Sentenced to 2 Years in Jail, Tempo.co, Dec. 13, 2018
- No new definitive chief named in PLN reshuffle, Jakarta Post, May 29, 2019
- Former head of Indonesia state power firm cleared in graft case, KFGO, Nov. 4, 2019
- Sofyan Basir Bebas, What Is the Fate of the Riau-1 PLTU Project?, Kompas, Nov. 6, 2019