Energy ministry seeks faster completion of Batang Toru hydropower project

The Ministry of Energy and Mineral Resources is seeking to accelerate the completion of the 510-megawatt Batang Toru hydropower project in North Sumatra after environmental authorities allowed construction to resume following a temporary halt linked to flooding allegations.

Deputy Energy Minister Yuliot Tanjung said the government had prioritized the project as part of efforts to expand renewable energy generation and reduce reliance on fossil-fuel power plants.

"One of the hydropower projects we are accelerating is Batang Toru. It has four units of 125 MW each, or around 500 MW in total," Yuliot told reporters on Friday.

The project, developed by PT North Sumatera Hydro Energy, faced legal challenges earlier this year after Indonesia's Environment Ministry filed a lawsuit alleging the project contributed to environmental damage and flash floods that struck parts of Sumatra in late 2025.

The ministry sought Rp201 billion ($12.3 million) in damages from the company. However, according to the 2025 financial report of state utility PT PLN (Persero), environmental authorities reinstated approval for construction activities on March 16, allowing work on the project to continue.

Read also: Batang Toru to relocate eight transmission towers following floods

PLN said the reinstated approval enabled NSHE to resume construction with a target of commencing commercial operations by the end of 2026.

Yuliot said the floods and landslides damaged infrastructure associated with the project, forcing the relocation of eight transmission towers. The relocation requires coordination among government agencies because the new sites are located within a production forest area.

"We are currently coordinating and synchronizing the release of the forest area for the relocation of those eight towers," he said.

The Batang Toru hydropower plant is expected to play a key role in supplying peak electricity demand in North Sumatra and supporting Indonesia's renewable energy targets. The project will consist of four turbines, each with generating capacity of 127.5 MW.

Officials have said the project's commercial operation date has been delayed by nearly a year because of the impact of the floods and landslides.

Eniya Listiani Dewi, director general of new and renewable energy at the Energy Ministry, previously said the project's target start-up date had shifted from December 2025 or January 2026 to October 2026.

Indonesia sees hydropower projects such as Batang Toru as critical to reducing dependence on imported fuel and limiting exposure to volatile oil prices.

Editing by Reiner Simanjuntak