Chinese-Financed Coal Power Plants Making Life Very Difficult for Indonesia’s Coastal Communities, June 22, 2023

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Since the construction of the Teluk Sepang coal-fired power plant [in Indonesia’s central Bengkulu Province] three years ago (in the first quarter of 2020), the usual fishing spots for Arfani and his peers have become dumping grounds for hot wastewater. This heat pollution causes fish in the area then to flee in search of cooler waters, putting them out of reach of most local fishermen and severely impacting their income.

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The power plant – funded by Chinese state-owned energy giant PowerChina and local firm Intraco Penta, operated by Tenaga Listrik Bengkulu (TLB) – is part of Indonesian President Joko Widodo’s ambition to achieve 35,000 MW of electricity generation. As of last year, nearly 50% of the targeted capacity had already been commissioned.

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China is recorded to have investments in fourteen operating coal power plants across Indonesia, according to Auriga’s data, and is estimated to be involved in dozens of new coal projects. Across Indonesia, new coal power plants with a combined capacity of nearly 15,000 MW will be constructed until 2030, despite the country’s pledge to switch to renewable energy. In Sumatra alone, fourteen new coal projects with a capacity of 4,000 MW are under development, including in Aceh and Jambi.

But even now, local communities are already facing devastation. According to data from Pulau Baai port, the number of fish production has been declining since 2019, from 8.6 million tonnes that year to [...] 2.4 million tonnes in 2022.

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Apart from losing their livelihoods, local communities must also deal with health and safety risks from the power plant. Dust from the facility has made children’s skin develop rash and itches, and there is always the risk of electronic damage from the overhead lines.

The power plant has also been dumping fly and bottom ash in an open area on Panjang Beach, and its hot wastewater dump is killing turtles [...]. In addition, Kanopi records showed that the power plant had dumped hazardous waste, such as used oil, in the agricultural area of Teluk Sepang.

“Power Plant Teluk Sepang continues to commit violations,” said Hosani Hutapea, Campaign Manager for Green Canopy Mining Indonesia. “We urge the Minister of Environment and Forestry, Siti Nurbaya, to take action against the power plant, which has repeatedly violated regulations, by revoking or suspending its environmental permit.”

PowerChina and Intraco Penta did not respond to CGSP’s requests for comment on the environmental fallout of the plant.