The president of Indonesia will review its ambitious 35,000 MW programme, aimed at developing 35 GW of new power capacity by 2019, as doubts over its completion are raising within the government and the private sector. Some large power projects, such as the flagship 2,000 MW Batang coal-fired power project in Central Java, have been delayed by protests from landowners and environmental groups.
Under this programme, Indonesia plans to build many coal-fired power plants, to boost the installed capacity of the country by 2/3 and ease chronic power shortages in Java. However, according to an update released by Indonesia's national power utility PT PLN earlier in May 2016, only 397 MW of new capacities have been commissioned in Indonesia, i.e. less than 2% of the target, and 3,862 MW were under construction and commissioning phase (11% of the total target).
Delays in the implementation of the 35,000 MW programme may hurt Indonesian coal producers, which are suffering from low global coal prices and declining demand from China, and erode economic growth.
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