BPI Provides Social Compensation as Source of Temporary Income for Farmers
As part of its commitment and social responsibility to the public and the environment, PT Bhimasena Power Indonesia (BPI) is currently undertaking various empowerment programs in areas of the construction of power plant in Batang, Central Java.
The social compensation is one of the programs that became BPI’s priority. In this initiative, the company extends cash assistance to tenant farmers and daily farmers affected by the power plant construction. Moreover, BPI also provided 32 hectares of land for affected tenant farmers whose plots of land were affected by the land acquisition for Central Java Coal Fired Power Plant (Central Java CFPP) in Batang. The replacement land was then evenly divided among 218 affected farmers where each farmer was assigned 1,200 sqm of land.
After BPI obtained the Environmental Impact Assessment (AMDAL) documents for the 2x1,000 MW Central Java CFPP, the joint venture comprising a consortium of three companies is fully committed to reducing, minimizing and mitigating impacts from the construction and future operation of the PLTU.
To minimize environmental impact, Central Java CFPP utilizes the Ultra-Super Critical technology that is environmentally-friendly and more efficient. Thus, coal consumption becomes fewer and emissions produced minimal.
The use of the most cutting-edge technology in Central Java CFPP is expected to set an example for the development of other power plants in Indonesia, especially in supporting the government’s program to develop power plants with the combined capacity of 35,000 MW.
(Left-right) Takashi Irie (President Director of BPI), Supardi (Head of District of Kandeman), Ary Wibowo (GM External Relation BPI), Bpk. Saryudi (Member of BPD / Karanggeneng Board of Representatives )
BPI President Director Takashi Irie when attending the social compensation fund disbursement activity at Karanggeneng Village Meeting Hall, Kandeman District (25/10), said that from the beginning, BPI is fully committed to adhere to and honor the prevailing regulations. One of which is the Environmental Impact Assessment (AMDAL) given to BPI in August 2013.
“We coordinate with the local government and community leader as well as representatives of the affected residents to formulate and execute the social mitigation program for residents of villages directly affected by the Central Java CFPP construction project,” said Irie.
This social compensation initiative, which is taken on a regular basis and given to hundreds of affected farmers and farm workers, became an alternative for income replacement as proof of BPI’s support for the economy of the affected areas. However, in a wider scope, the Central Java CFPP construction is one day expected to be able to contribute to the government’s plan to provide 35,000 MW of electricity.
It is important to note that the 2x1,000 Central Java CFPP is the first joint infrastructure project between the government and the private sector in Indonesia which becomes part of the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI), which will serve as the driver of the economic corridor growth and plays a role of creating the multiplier effect in Java.
“We will always support the government in carrying the National Mid-scale Development Plan (TPJMN) to success; the government made the plan to increase national power capacity. We also believe that as demand for power to meet, the economy will grow and welfare will be evenly distributed,” said the leader of the company which has recently received a Special Award for the Best Environmentally-Concerned Company category in early October at the Indonesia Best Electricity Award (IBEA) 2016.