KEPCO to Proceed with Indonesian Coal Power Plant Project as Planned... Approved by Board of Directors

[Asia Economy Reporter Kim Bo-kyung] Korea Electric Power Corporation (KEPCO) has decided to proceed with its investment project in the JAWA 9 and 10 coal-fired power plants in Indonesia as originally planned.

On the morning of the 30th, KEPCO held a board meeting at the KEPCO Art Center in Seocho-gu, where the investment agenda for the JAWA 9 and 10 thermal power plants was solely presented and approved as originally proposed. Previously, at the board meeting held on the 26th, the resolution was deferred, but the board reconvened four days later and passed the motion.

Environmental groups have opposed KEPCO's overseas coal-fired power projects, citing environmental pollution concerns.

However, it appears that the board members supported KEPCO's rationale that the project has already passed the preliminary feasibility study and will be constructed in accordance with international environmental standards.

This project is a large-scale endeavor to build two 2,000 MW coal-fired power plants in Banten Province, western Java Island, with a total project cost of 3.46 billion USD (approximately 4.1 trillion KRW).

KEPCO is jointly promoting the project with Indonesia Power (a subsidiary of the Indonesian Electricity Company) and Barito Pacific, an Indonesian power and petroleum specialist company. KEPCO will invest 51 million USD (about 62 billion KRW) through a 15% equity stake.

Doosan Heavy Industries will participate in the construction of the power plants. Doosan Heavy Industries’ contract value amounts to 1.6 trillion KRW, and with the project proceeding as planned, liquidity is expected to improve.

Environmental organizations such as Greenpeace have continuously protested, urging the suspension of investment, arguing that the project is unprofitable and causes environmental pollution due to massive greenhouse gas emissions.

In response, KEPCO has argued, "This project should consider not only profitability but also value-added factors such as labor costs and financial expenses," adding, "If Korea withdraws, other countries will ultimately replace it."

This content was produced with the assistance of AI translation services.