Sumsel-1 power station

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Sumsel-1 power station, also known as South Sumatra 1, is a proposed 600-megawatt (MW) coal-fired station in South Sumatra Province, Indonesia.

Location

The undated satellite photo below shows the proposed location for the plant in Tanjung Menang village, Rambang Dangku District.

Planet satellite photos show construction progress from March 2017 to April 2018.

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Background on Plant

In the 2015-2024 PLN long-range supply plan, Sumsel-1 power station in proposed for 2020/2021. in the 2017-2026 plan, the project is advanced to 2019/2020.

The project is estimated to cost US$700 million. In January 2016 the project was contracted out on a "building-owning-operating" (BOO) mode to China Shenhua.

In April 2017, China Shenhua reported to its shareholders that the company had received "on-side permission approval" to begin construction works.

The project is listed as under Construction in the 2018-2027 PLN long-range plan. PLN has assigned responsibility for developing the plant to its subsidiary Pembangkitan Jawa Bali Investasi (PJBI).

In March 2020 the project's sponsor declared force majeure and stated that development would be delayed as a result of the COVID-19 pandemic. On March 24, 2020 it was reported that construction and labor negotiations were being delayed due to the COVID-19-related travel ban preventing employees of Guangdong Engineering from returning from China.

In October 2022, it appeared Nusatama Berkah Tbk (NTBK) and PT Unggul Ejawantah Industri signed an agreement for the construction of the PT Cakra Bumi Energi coal processing plant with a contract value of IDR 210 billion. The 1000 TPH coal processing plant was expected to support the power station. The power station was still reportedly targeted to operate by December 2023.

In January 2023, Planet imagery suggested that construction had commenced and was in early stages.

Financing

In January 2017, a US$520 million loan agreement was closed to finance the 600-MW project. The loans will be provided by China Construction Bank, Bank of China, and ICBC.

Environmental Impact

In January 2018, it was reported that construction of the plant was causing flooding and damage to an adjacent oil palm plantation.

Opposition

In September 2021 members of Clean Sumsel staged a protest in Tanjung Menang Village and called for an investigation into corrupt practices around the permitting of the plant, respect for the historic land around the plant, and the reopening of nearby streams that have been stopped as part of construction.

Project Details

• Sponsor: China Shenhua
• Location: Tanjung Menang village, Rambang Dangku District, Muara Enim Regency, South Sumatra Province, Indonesia
• Coordinates: -3.47666667, 103.99916667 (exact)
• Status: Construction
• Gross Capacity: 2 x 300 MW
• Type: Subcritical
• Start date: 2023
• Coal Type:
• Coal Source:
• Source of financing: US$520 million Bank of China, China Construction Bank, ICBC

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