Purbaya Reveals Obstacles to US$80 Million Floating Solar Project at Saguling Reservoir
Jakarta - Finance Minister Purbaya Yudhi Sadewa once again led a session to resolve business bottlenecks. In this session, one of the companies involved was PT Acwa Tenaga Saguling.
The ministries and agencies involved included the Ministry of Forestry, the Ministry of Energy and Mineral Resources, representatives from the West Java Provincial Government, PT PLN, and PT PLN Indonesia.
CEO of PT Indo Acwa Tenaga Saguling, Tim Anderson, explained that there was a delay in obtaining the forest area use permit (PPKH) for the floating solar power plant (PLTS) project at Saguling Reservoir, which was hindering the construction of the project’s electricity transmission network.
This project, valued at approximately US$80 million, is a collaboration with Saudi energy company ACWA Power to build a floating solar PV system on Saguling Reservoir in West Java. The electricity generated will be sold to PLN under a 25-year Power Purchase Agreement (PPA). Initially targeted to operate by 30 June 2026, the timeline has now been delayed to March 2027.
“There is still a slight risk if we cannot resolve what needs to be addressed in the coming weeks. Initially, it was June last year, but there was a slight delay in obtaining the AMDAL. We obtained the AMDAL for the power plant area on 31 July last year,” said Tim during the session on Thursday (7/5/2026).
The Ministry of Forestry explained that the permit process could not proceed fully because the official application had not yet been technically submitted. This was due to one incomplete requirement: the recommendation from the Governor of West Java.
“So actually, it hasn’t been processed with us yet, but we have provided assistance for the items that need to be completed as quickly as possible,” said the Ministry of Forestry representative during the session.
President Director of PT PLN, Darmawan Prasodjo, also explained that his company had prepared replacement land, which is one of the obligations in the forest area use process.
He noted that the replacement land comes from assets owned by the PLN Group in the Saguling PLTA area, ready to be transferred as forest land.
“It’s ready, Sir. Coincidentally, in the Saguling PLTA area where the project is being developed, there is PLN Group-owned land that is ready to be transferred as forest land,” he said.
On the other hand, the Secretary of the West Java Provincial Government, Herman Suryatman, explained that the governor’s recommendation letter was actually ready to be issued. However, they requested a commitment from PLN regarding the obligation to provide replacement land.
The provincial government recorded that PLN’s obligation to provide replacement land in West Java totals 1,081 hectares, but only about 159 hectares or 14.7% has been realised.
“Of course, it can’t be done immediately ‘pok terlong’ as people in Bandung say, but at least we request an agreement or integrity pact from you, so that we are confident it will be resolved in parallel,” he said.
The meeting concluded with an agreement between the parties to resolve the promised land replacement. Purbaya gave until 2027 for PT PLN to complete the agreement, and the Governor of West Java’s recommendation will be issued shortly.
“Clearly, time until 2027 should be sufficient, I think. But for this project, the earlier obstacle of the governor’s recommendation has been removed; it will be issued shortly. Then it just needs to be processed with the Ministry of Forestry. Don’t take too long,” he concluded.