Indonesia Revokes Hydropower License for NSHE's Batang Toru Project Amid Environmental Concerns
The Indonesian government has revoked the business license for NSHE's Batang Toru hydropower project, citing environmental violations identified by the Forest Area Regulation Task Force. This decision comes amid heightened scrutiny following recent hydrometeorological disasters and aims to enforce stricter regulations on forest utilization. The $1.67 billion project was intended to contribute significantly to Sumatra's electricity supply but is now halted due to these concerns.
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The Indonesian government, led by Minister Prabowo, has revoked the business license for NSHE's Batang Toru hydropower plant, which has a capacity of 510 MW. This decision follows the government's efforts to enhance forest area regulation through the Forest Area Regulation Task Force, established under Presidential Regulation No. 5 of 2025.
After hydrometeorological disasters in Aceh, North Sumatra, and West Sumatra, the Task Force accelerated audits in the affected areas. As a result, 28 companies, including NSHE, were found in violation of forest utilization regulations.
The Batang Toru project, part of a 35,000 MW electricity generation initiative, is designed as a run-of-river plant to support 15% of Sumatra's peak electricity load, with an investment of $1.67 billion. NSHE is a joint venture, with majority shares held by PT Dharma Hydro Nusantara and significant stakes from PLN and Fareast Green Energy Pte. Ltd.
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