JAVA 9-10 A KOREAN FORCED INVESTMENT IN THE MIDST OF A CLIMATE AND HUMANITARIAN DISASTER
Summary
This report by Trend Asia argues that the construction of the Java 9 and 10 Coal Power Plants (CPP) in Cilegon, Banten, is a 'forced investment' that is economically unviable, environmentally destructive, and a threat to public health. The document calls for South Korean financial institutions to withdraw funding, citing a contradiction between this project and South Korea's domestic 'Green New Deal' and climate commitments.
Key insights
- The Java 9 and 10 Coal Power Plant (CPP) project in Cilegon, Banten, is funded by South Korean institutions, including the Korea Development Bank (KDB) and Korea Export-Import Bank (K-Exim), with a total investment of 3.2 billion US dollars.
- A pre-feasibility study by the Korean Development Institute (KDI) indicated that the project is not profitable for KEPCO, showing a negative Net Present Value (NPV) of -8.83 million USD, with potential losses increasing to -120 million USD due to EPC cost risks or -240 million USD if financing fails.
- The project is situated in the Java-Bali network, which suffers from a capacity surplus due to poor planning by the state-owned electricity company (PLN). Actual electricity demand growth was only 6.9 percent compared to the estimated 8.3 percent, resulting in a power plant utilization rate of only 57.3 percent.
- The report highlights a 'double standard' in South Korea's policies, where the government restricts coal power domestically to protect citizens from air pollution but continues to fund high-emission projects abroad in countries like Indonesia and Vietnam.
- Banten Province is described as being in an 'industrial waste emergency,' with hundreds of companies lacking proper waste management. This has led to significant health issues, including 39,455 cases of Acute Respiratory Infection (ARI) in Cilegon City and 15,039 cases among children under five in July 2017.
- The expansion of the Java 9 and 10 CPP is predicted to cause 4,700 premature deaths over the 30-year operational life of the plant.
- The report identifies severe environmental hazards in Banten, including coal dust piles reaching 80-100 meters and multiple incidents of coal barges catching fire or spilling coal into the sea, such as a 7,000-ton spill in the Pandeglang Sea on July 14, 2019.
- Many coal power plants in Indonesia, including those in Banten, are located in disaster-prone coastal areas at risk of megathrust earthquakes and tsunamis, specifically citing a potential magnitude 8.8 earthquake in the south of Java.
- The report argues that air pollution in Banten increases the vulnerability of its residents to the Covid-19 pandemic, noting that Banten is among the ten provinces with the highest number of positive cases.
- Banten residents and South Korean citizens filed a lawsuit in August 2019 in a South Korean court to stop the funding of the Java 9 and 10 projects, citing environmental and health risks.
Cite the original document
- APA
- (Alm.), T. A., Indradi, Y., Birry, A. A., Arlinus, Z., Primastika, W., Prasetiyo, A., Nasution, M., & Meutia, H. (n.d.). JAVA 9-10 A KOREAN FORCED INVESTMENT IN THE MIDST OF A CLIMATE AND HUMANITARIAN DISASTER. Trend Asia. https://trendasia.org/wp-content/uploads/2020/09/FA-LAPORAN-PLTU-JAWA-9-10-ENG.pdf
- Chicago
- (Alm.), Tommy Apriando, Yuyun Indradi, Ahmad Ashov Birry, Zamzami Arlinus, Widia Primastika, Andri Prasetiyo, Marina Nasution, and Hilda Meutia. JAVA 9-10 A KOREAN FORCED INVESTMENT IN THE MIDST OF A CLIMATE AND HUMANITARIAN DISASTER. Trend Asia, n.d. https://trendasia.org/wp-content/uploads/2020/09/FA-LAPORAN-PLTU-JAWA-9-10-ENG.pdf.
- Wikipedia
- {{cite report |last1=(Alm.) |first1=Tommy Apriando |last2=Indradi |first2=Yuyun |last3=Birry |first3=Ahmad Ashov |last4=Arlinus |first4=Zamzami |last5=Primastika |first5=Widia |last6=Prasetiyo |first6=Andri |last7=Nasution |first7=Marina |last8=Meutia |first8=Hilda |title=JAVA 9-10 A KOREAN FORCED INVESTMENT IN THE MIDST OF A CLIMATE AND HUMANITARIAN DISASTER |publisher=Trend Asia |url=https://trendasia.org/wp-content/uploads/2020/09/FA-LAPORAN-PLTU-JAWA-9-10-ENG.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{almndjava, author = {(Alm.), Tommy Apriando and Indradi, Yuyun and Birry, Ahmad Ashov and Arlinus, Zamzami and Primastika, Widia and Prasetiyo, Andri and Nasution, Marina and Meutia, Hilda}, title = {{JAVA 9-10 A KOREAN FORCED INVESTMENT IN THE MIDST OF A CLIMATE AND HUMANITARIAN DISASTER}}, institution = {Trend Asia}, url = {https://trendasia.org/wp-content/uploads/2020/09/FA-LAPORAN-PLTU-JAWA-9-10-ENG.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
Full text
Collected · Record updated