Ecobiz.asia — The US$80 million Saguling Floating Solar Power Plant project being developed by PT Indo ACWA Tenaga Saguling remains delayed due to the pending issuance of a forest area utilization permit from Indonesia’s Ministry of Forestry.
The issue emerged during a debottlenecking hearing held by the Government Program Acceleration Task Force for Economic Growth Support (P3M-PPE) at the Ministry of Finance office in Jakarta on Thursday (May 7, 2026). The session was chaired by Finance Minister Purbaya Yudhi Sadewa.
The Saguling Floating Solar project is a joint venture between PT PLN Indonesia Power Renewables and ACWA Power through PT Indo ACWA Tenaga Saguling. The 60 megawatt alternating current (MWac) project will be built on the Saguling Reservoir in West Java.
The company signed a Power Purchase Agreement (PPA) with PT PLN (Persero) on Aug. 13, 2024.
ACWA Power Indonesia Chief Executive Officer Tim Anderson said the project had secured environmental approvals since 2025, including an Environmental Impact Assessment (Amdal) and Environmental and Social Impact Assessment (ESIA) required for international financing.
However, the development of a 4.4-kilometer transmission line and substation crossing forest areas managed by the Ministry of Forestry requires a Forest Area Utilization Approval Permit (PPKH).
“We are already entering the critical path phase, but the special facility permit has not been issued because the PPKH process remains pending,” Anderson said.
During the hearing, representatives from the Ministry of Forestry said the permit could not yet be issued because the project still lacked a recommendation letter from the Governor of West Java.
West Java Regional Secretary Herman Suryatman said the provincial government was prepared to issue the recommendation, provided that PLN Indonesia Power fulfills its obligation to provide 1,081 hectares of replacement forest land.
According to Herman, only around 159 hectares, or 14.7 percent, of the required replacement land has been completed so far.
“The Governor’s recommendation letter will be issued soon, but PLN must also commit to fulfilling the remaining replacement land obligation within a reasonable timeframe. For ACWA, the commitment not to cut trees must be formalized through an integrity pact,” he said.
PLN Indonesia Power Director Bernadus Sudarmanta said the company is committed to completing the replacement land obligation no later than 2027, in line with government instructions.
Meanwhile, ACWA Power Indonesia said it is prepared to comply with the West Java administration’s requests, including signing an environmental integrity pact.
The hearing concluded with an agreement among stakeholders on the settlement of the replacement land issue. Purbaya gave PLN until 2027 to fulfill the obligation and said the issue regarding the West Java governor’s recommendation for the Saguling floating solar project had been resolved and would soon be finalized before the process proceeds to the Ministry of Forestry. ***
