The Pasaribu Brothers at Dharmawangsa

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THREEE members of the Pasaribu family have been tied with a hydroelectric power plant project (PLTA) in their hometown, around the Batang Toru Protected Forest, North Sumatra. Syahrul Martua Pasaribu, North Tapanuli regent, was the person who issued North Sumatera Hydro Energy’s (NSHE ) location permit on July 5, 2011. “The project has been ongoing for a long time, way before I took office,” said Syahrul on Monday three weeks ago.

According to Syahrul, the project’s permit processing began in 2008, during the previous regent’s tenure, while the Golkar Party politician only dealt with the Batang Toru PLTA when he assumed office in 2010. He claims that the permit was processed in line with regulations. “Clean and clear,” said Syahrul, 62 years old. “I didn’t want to play games there.”

Syahrul claims he was not too involved in Batang Toru’s licensing process, although his brother Panusunan Pasaribu was a commissioner at NSHE along with Anton Sugiono. Anton has remained the company’s president commissioner.

According to the company’s deed, Panusunan became commissioner in 2012. Panusunan said he was enlisted by Anton Sugiono because of his experience of building a 50-megawatt (MW) PLTA in Sipansihaporas—also in the Batang Toru Forest ecosystem—during his tenure as Central Tapanuli regent in 1995-2001. “However, the (plant’s) capacity there was not to the extent of Batang Toru,” said the 72-year-old.

Anton said he recruited Panusunan because of the latter’s experience as a regent who once oversaw a similar project in the same forest. “We needed someone that the people looked up to,” he said. “He was also in the private sector then.”

One year after Panusunan joined NSHE, Syahrul revised the location permit by issuing a new permit because in 2013 Anton merged NSHE and Anugerah Alam Lestari. Anugerah Alam Lestari had already obtained a location permit for building a power plant in Batang Toru. “One higher up, one below. We merged them,” said Anton.

The merging of the two companies extended NSHE’s operational area. Based on the location permit granted by Syahrul Pasaribu, NSHE’s operational area grew to 6,598.35 hectares—one and a half times the size of Central Jakarta. The project is located in a utilization area inside the protected forest ecosystem of Batang Toru, parts of which intersect or fall under smallholder plantation sites owned by the people of South Tapanuli.

Panusunan was a commissioner for four years. In 2016, he resigned because he wanted to focus on his duties as chairman of the North Sumatra University (USU) advisory council. But according to the university’s website usu.ac.id, Panusunan was elected chairman until 2020 on February 5, 2018—two years after he resigned from NSHE. “I was entrusted by USU (to occupy the seat),” said Panusunan.

Despite his move to academia, Panusunan did not fully disentangle from the affairs of the Batang Toru power plant. In early September 2018, USU created an MoU with NSHE and the South Tapanuli Regency government to accelerate the power plant’s development. Panusunan, Syahrul, and Anton were present at the event. “USU assisted NSHE in research, development, and the application of knowledge for the preservation of nature and local communities,” said Panusunan.

Their brother, Gus Irawan Pasaribu, was also present at the event. Irawan is the chairman of House of Representatives (DPR) Commission VII, which oversees energy, research, technology, and the environment. Irawan’s partners in the government are the energy and mineral resources ministry, the state electrical company PLN, and the environment and forestry ministry—three institutions connected to the Batang Toru power plant.

The Batang Toru power plant is among the projects included in the 35,000-megawatt electricity procurement plan (RUPTL) under President Joko Widodo’s administration. Minister of energy and mineral resources at the time, Sudirman Said, was among those who approved electricity projects in 2014.

Irawan said the  Batang Toru PLTA was already in motion before he became chairman of the energy commission in 2016. He claims to have been unaware of the project because in 2014 he was still a member of the DPR financial affairs commission. “The project was already in process since before I was a DPR member,” he said.

Irawan claims he did not want to be involved in the development of the Batang Toru PLTA, although the project is located in his electoral region. “Batang Toru is one of my hometown’s potentials,” said the Gerindra Party politician. “It is the duty of DPR members to make use of such potentials.”

At this time, the Batang Toru PLTA is still in the construction phase. According to Anton Sugiono, the most expensive element in the building process is engineering, which takes up 80 percent of investment. Batang Toru is being built by Sino Hydro, a Chinese company Anton had partnered with in building the Asahan PLTA. In China, Sino built a 22,400-MW power plant on the Yangtze River.

According to the proposal, the Batang Toru PLTA is a 240-MW power plant meant to provide North Sumatra’s daily demand for electricity (run off). The capacity was revised when the proposal was submitted to the state electricity company PLN. Anton said it was the PLN as well as the energy and mineral resources ministry which asked them to maximize the volumetric water flow in order to accommodate maximum demand of 510 MW.

A former PLN official said NSHE was granted the project through direct appointment. He and other officials assigned NSHE because the company already had experience in building PLTAs since 1995. Anton Sugiono admitted that the project was not achieved through tender because no other company had the competence. “When it comes to hydro power, we’re the market leader,” said Anton.

Sudirman Said, the energy minister who made the decision, claims to have been unaware of the Batang Toru PLTA affairs. But he did admit to knowing Anton Sugiono and those in NSHE’s management, his ‘hang-out buddies’ at the Bimasena Hotel, Dharmawangsa, South Jakarta. Among businesspeople in the energy sector, Anton and his friends are known as the ‘Dharmawangsa Crew’. “Architects in the energy sector gather there,” said the former minister.

A former PLN official said NSHE was granted the project through direct appointment. He and other officials assigned NSHE because the company already had experience in building PLTAs since 1995. Anton Sugiono admitted that the project was not achieved through tender because no other company had the competence. “When it comes to hydro power, we’re the market leader,” said Anton.

The Batang Toru PLTA is scheduled to operate in 2022. According to Anton’s calculations, the sale value to PLN once the power plant begins operating comes to US$0.18 per kWh. “But ask the PLN about the price. They usually negotiate to the lowest price,” he said.

Despite being a buyer for electricity, PLN owns 25 percent shares in NSHE through its subsidiary, Pembangkitan Jawa Bali Investasi. Fearest Green Energi Pte Ltd is another shareholder with 22.18 percent. The majority shareholder, with 52.82 percent, is Dharma Hydro Nusantara. Anton said a Chinese company is responsible for most of the financing. “But we’re behind the wheels.”

With 510 MW, said Anton, the Batang Toru PLTA will supply 15 percent of North Sumatra’s power demand. He claims that Batang Toru can save US$400 million compared to fossil-fuel-based energy production. And the PLTA can reduce carbon emissions by 4 percent in 2030.

Anton does not deny Syahrul and Panusunan Pasaribu’s roles in smoothing the power plant’s permit. He claims, however, to have only been acquainted with Irawan one month ago. “But if anyone ties the project with them,” he said, “I’m sorry, but that’s cruel.”