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Bali Pemaron Power Plant starts amid controversy

| Source: JP

Bali Pemaron Power Plant starts amid controversy

Rita A. Widiadana, Lovina, North Bali

Construction of the controversial US$51 million Pemaron power
plant, located in the middle of the Lovina tourist and
residential area in North Bali, began on Friday, ending a two-
year delay amid protests from environmentalists.

PT Indonesia Power, a unit of state electricity company PT
PLN, is building the 146-megawatt (MW) gas and steam powered
plant in Buleleng regency in the village of Kalibukbuk, about 100
kilometers north of Bali's capital, Denpasar.

Groups from both opposing and supporting camps watched from
outside the ground-breaking ceremony led by Buleleng Regent I
Putu Bagiada on Friday.

"It has been decided by the government. We have to provide
legal certainty to investors; otherwise no company would invest
in Buleleng," Bagiada said.

Construction was delayed for two years due to protests from
various community groups in the regency. They argued that the
power plant would pollute the environment and thus undermine
Lovina's attractiveness as a tourist area.

However, backers of the project said that Bali was in dire
need of a new power plant, saying that demands for electricity on
the island would soon outstrip PLN's capacity to supply power
from Java.

Business development manager at Indonesia Power, Edi Sulistyo,
said Bali was facing an energy crisis, and that the power plant
must be built now.

Bali receives its power from power plants in Java through the
Java-Bali transmission grid, which connects the two islands via
giant underwater cables.

According to PLN, the Pemaron power plant can generate enough
electricity to meet the rising demand.

"If everything goes smoothly, the power plant will be
completed within one year," Edi said.

But the construction of the power plant could prove costly to
the environment.

It is believed the project will pollute Lovina Beach, as the
power plant will need around 700 tons of diesel fuel every two
weeks for its operation.

The diesel will be delivered by tankers through a pipeline
installed at Lovina Beach, now a favorite diving and snorkeling
site.

The risks of leaks and oil spills could not just spell a major
environmental disaster, but also damage the island's tourism
industry. It has yet to recover from the Oct. 12 bombings, which
killed at least 202 people, mainly foreign tourists last year.

Gede Wisnaya, chairman of the Bali Development Study and
Empowerment, said that he was extremely disappointed. "We have
been protesting since 2001, and have also written a letter to
President Megawati Soekarnoputri and the Minister of Environment,
but no one has responded."

Edi argued the power plant posed only a small environmental
risk, citing an environmental impact study on the project carried
out by his company, which revealed very low environmental risks.

"We have calculated the risks and affirm that there will be no
major environmental degradation," he professed.

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