Indonesian court revokes environmental license for the Cirebon coal plant expansion

Indonesian court revokes environmental license for the Cirebon coal plant
expansion

An Indonesian court has ordered the revocation of the environmental permit
for the Cirebon 2 coal-fired power plant.

The project aims to build a 1,000-megawatt coal-fired power plant next to an
existing 600-megawatt facility in Cirebon in the western part of Indonesia's
Java Island. The current power plant and the planned expansion have been the
subject of an ongoing campaign by local and international environmental
activists.

According to an April 19 judgement from the Bandung Administrative Court,
the expansion plan violated the local spatial planning law. Under that law,
project developers PT. Cirebon Energi Prasarana had permission to operate in
one sub-district, Astanajapura.

However, the project plans were also found to cover a second sub-district,
Mundu, which is zoned for other purposes, Indonesian Forum for the
Environment (WALHI) explained in an April 20 press statement.

"This is an important judgement which shows the failure of the local
government to respect an approvals process designed to protect the lives and
livelihoods of people in the surrounding area," added Wahyu Widianto,
campaign manager of WALHI West Java.

Without an environmental permit, the project should not be allowed to
continue. However, the developers can appeal the ruling within 14 days of
its issuance.

Although it is still not final, the verdict marks a significant victory for
activists who have long been fighting coal-power developments in Cirebon.
Dozen of residents from the affected sub-districts gathered at the Bandung
courthouse to hear the verdict and, later, to celebrate the news.

They claim the existing plant has had negative health impacts due to air
pollution and has already harmed the livelihoods of fisherman, farmers and
salt-makers in the area.

Since the 600-megawatt plant opened five years ago, life in Cirebon has
become increasingly precarious, 70-year old Astanajapura sub-district
resident Jusmadi told Mongabay-Indonesia. Fish are more difficult to find,
rice crops suffer from air pollution, and fishponds don't always produce
fish, said Jusmadi, who like many Indonesians goes by one name.

Villagers fear adding an additional 1,000-megawatts of capacity will have
even greater impact on them.

The project has been the focus of numerous demonstrations, including a May
2016 protest in which environmental activists climbed machinery used to
unload fuel being shipped into the plant, hanging protest banners and
blocking the supply of coal.

The expansion plans for Cirebon are also the subject of a civil case, which
alleges that local officials did not satisfy all legal and procedural
requirements before clearing the project's environmental impact assessment,
known locally as an AMDAL. Among other issues, the suit alleges that the
AMDAL and environmental permit were issued without legally required
consultations with affected communities, WALHI said.

Despite the controversy over the project, financing plans have continued to
move forward. On April 18, the day before the court ruling, a consortium of
international financers led by the state-owned Japan Bank for International
Cooperation (JBIC) committed to providing the project $1.74 billion in
funding.

"Signing the loan agreement on day before the court decision shows a total
disrespect for Indonesian laws and even could be seen as an attempt to
influence the court. Therefore, JBIC now must drop all financing plans for
Cirebon 2," WALHI campaigner Dwi Sawung said in a press statement.

Japanese environmental groups - including Friends of the Earth Japan, Japan
Center for a Sustainable Environment and Society, Kiko Network and 350.org
Japan - have also called on JBIC to withdraw financing for the project.

"We express our strong and serious objection against JBIC's premature
decision to finance Cirebon 2, which prioritises the company's profit over
the local people's rights, whilst ignoring a judicial decision in the host
country and in contravention of its own guidelines," the NGOs wrote in an
April 19 joint statement.

Sensitive to both climate change concerns and public pressure, multilateral
and Western lenders have increasingly backed away from funding coal plants.
Meanwhile, Asian financial institutions like the JBIC have become
increasingly important funders for such projects. In Indonesia, JBIC has
also come under scrutiny for its role in financing the Tanjung Jati B and
Batang coal-fired power plants.

JBIC did not respond to an emailed request for comments.

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com