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Home › Dodgy Deals ›
Dodgy Deal
Batang Toru DamIndonesia

Project – Active

This profile is actively maintained
Lead organisation:
Friends of the Earth US
Last update: 2022-07-12 00:00:00
Endangered by the Bantang Toru Dam: the rarest species of great ape in the world, the Tapanuli orangutan. Photo: Tim Laman via Wikimedia Commons (CC BY 4.0)

Project – Active

This profile is actively maintained
Lead organisation:
Friends of the Earth US
Last update: 2022-07-12 00:00:00
Why this profile?

Why this profile?

The Batang Toru Dam will have potentially irreversible environmental, social, and biodiversity impacts on the North Sumatra region in Indonesia. The Batang Toru ecosystem is a critical habitat for many endangered species including Sumatran tigers, sun bears, agile gibbons, and pangolins. This ecosystem is the only known habitat of the newly discovered Tapanuli orangutan, of which less than 800 currently remain – making it the most endangered Great Ape species in the world. If built, the Batang Toru Dam project will likely doom the Tapanuli orangutan to extinction.

What must happen

PT NSHE and Sinohydro should immediately halt all operations, and remove already built infrastructure, including roads and bridges, which is currently giving access to poaching, illegal logging and land speculation. Given the high densities of orangutans at the project site, any further disturbance will have severe consequences for the Tapanuli orangutan.

Reputable independent consultants should immediately conduct a new environmental impact assessment. Given the presence of critically endangered species and the impacts on downstream communities, this will undoubtedly show that Batang Toru is not a suitable location for a hydroelectric dam.

To ensure the long-term survival of the Tapanuli orangutan, the Indonesian government must give legal protection to the whole Batang Toru forest. This will prevent similar threats emerging in future.

About
Sectors Hydroelectric Power Generation
Location
Status
Planning
Design
Agreement
Construction
Operation
Closure
Decommission

The Batang Toru Dam is a proposed hydroelectric dam project in the fragile Batang Toru ecosystem, North Sumatra. The project is expected to generate 510 MW electricity for six hours a day and will occupy several hundred hectares of prime habitat along the Batang Toru River in the South Tapanuli district, but would impact a much larger area. Currently, land is being developed and cleared for the project. PT North Sumatra Hydro Energy (PT NSHE) is developing the project, originally announcing plans for the hydropower plant in 2012. The dam is slated to become operational by 2022 and is expected to cost USD 1.6 billion.

Impacts

Social and human rights impacts

The dam will radically alter the nature of downstream water courses, significantly impacting the local people. It will produce electricity during periods of peak demand, typically between 6pm and midnight. During the day, the river will be blocked and the reservoir above the dam will gradually fill up, to be released later through the tunnel and turbines to generate electricity. Downstream communities, which normally experience drought and flood cycles a few times a year, will now have to learn to cope with them on a daily basis.


Environmental and climate impacts

Flawed impact assessment The environmental impact assessment (EIA) is deeply problematic. While it recognizes the existence of the many of the problems listed below, including the presence of orangutans and other endangered species, it fails to address the full impacts the dam will have on wildlife, or other problems such as mitigation measures for the impacts on downstream communities.

Risk of extinction The Batang Toru forest is home to the entire remaining population of Tapanuli orangutans, the most endangered great ape species in the world. The new project poses a very real threat of extinction for this entire species. Many more endangered species will be severely impacted, such as Sumatran tigers, sun bears, agile gibbons and pangolins.

Threats to fisheries and river ecology The dam will split the river in two, preventing fish and other species from migrating along the river. This will have serious impacts on fish like jurung, an extremely important and highly valued source of food and income for local communities.

Threats from pollution Despite being billed as a ‘green’ project, like all large hydroelectric projects the Batang Toru dam will emit significant quantities of greenhouse gases, contributing to climate change. These emissions originate from the manufacture of the massive amounts of concrete and other materials needed for construction. They are also emitted by decomposing vegetation in the flooded reservoir above the dam, especially methane, which as a greenhouse gas is 30 times more potent than carbon dioxide. Other dam reservoirs have also led to increased concentration of methylmercury in the aquatic food chain, which is known to cause brain and nervous system damage.

Risk of earthquakes Batang Toru lies in the middle of an earthquake hotspot: the region has the highest density of earthquakes in mainland Sumatra. There is also mounting evidence that reservoirs can themselves trigger earthquakes, due to the increased pressure created by large bodies of water. If an earthquake were to strike and rupture the dam when the reservoir was full the consequences for those living downstream would be catastrophic (Damming Evidence report 2018).

Financiers

The Batang Toru Dam is expected to cost USD 1.6 billion and is largely funded by the Bank of China, as part of China's Belt and Road Initiative. The project's joint venture partners (PT DHN, Fareast Green Energy, and PT PJB Investasi) are expected to provide equity finance.

Institution type
Finance type
Year

In 2018, the World Bank and the Asian Development Bank shied away from supporting the Batang Toru Dam project in Indonesia over environmental concerns.

In April 2019 Bank of China stated that it would re-evaluate its financing of the Batang Toru Dam project.

Companies

PT North Sumatera Hydro Energy (PT NSHE) is a joint venture owned by the parent companies: PT DHN (52.8%), Fareast Green Energy (22.2%) and PT PJB Investasi (25%).

In June 2022 the Financial Times reported that SDIC Power, a Chinese state-owned company, had acquired a 70% interest in the project (Financial Times).

Project sponsor

PT North Sumatera Hydro Energy (PT NSHE)

Indonesia
Website
No companies

Other companies

Fareast Green Energy

Singapore
Website

PJB Investasi

Indonesia
Website

PT Dwipa Hasta Nusantara (PT DHN)

Indonesia
Website

PT PLN

Indonesia
Website

Sinohydro

China
Website
No companies
Maps

Location of the Batang Toru ecosystem (Friends of the Earth):

8009
180821_location_batang_toru_ecosystem.jpg
center
Location Batang Toru Ecosystem.
Photo: Friends of the Earth

 

Five zones of habitation of the Tapanguli orang-utan (Mighty Earth report Jan 2020):

11049
batang_toru_analysis_englishfinal_pdf.png
center
Five zones of habitation of Tapaguli orang-utan.
Photo: Mighty Earth

 

News
BankTrack
Partners
Blog
External
BankTrack news BankTrack blog Partner news Partner blog

Chinese state-owned company accused of endangering rare orang-utans

2022-06-19 | The Financial Times
Blog
BankTrack news BankTrack blog Partner news Partner blog

Banks called upon to take action to protect biodiversity ahead of UN Biodiversity Conference in Kunming

Civil society organizations urge banks to adopt stringent “No Go” policy for biodiversity rich areas
2021-05-26 | Nijmegen | BankTrack
BankTrack news BankTrack blog Partner news Partner blog

At Least 3 Killed in Landslide near Controversial Chinese-Backed Dam in Indonesia

2021-04-30 | Benar News
BankTrack news BankTrack blog Partner news Partner blog

Dam threatening world's rarest great ape faces delays

2020-12-01 | Science.org
BankTrack news BankTrack blog Partner news Partner blog

Orwellian doublespeak clouds discussion over ape and dam

2020-07-22 | The Jakarta Post
BankTrack news BankTrack blog Partner news Partner blog

Hydropower project ‘imperils world’s rarest great ape species’

2020-02-28 | Changing Times
BankTrack news BankTrack blog Partner news Partner blog

Indonesia urged to probe death of Belt and Road project critic

2019-10-31 | The Financial Times
BankTrack news BankTrack blog Partner news Partner blog

A Hard-Fighting Indonesian Lawyer’s Death Has Colleagues Asking Questions

2019-10-24 | The New york Times
BankTrack news BankTrack blog Partner news Partner blog

Walhi Calls Foul Play in Death of Activist Golfrid Siregar

2019-10-07 | Tempo.co
BankTrack news BankTrack blog Partner news Partner blog

The Endangered Tapanuli Orangutan Loses an Ally

2019-09-11 | Mighty Earth
BankTrack news BankTrack blog Partner news Partner blog

Dirty tricks behind conservation u turn for worlds rarest ape

2019-09-03 | Alert
BankTrack news BankTrack blog Partner news Partner blog

What's Wrong with Environmental Impact Assessments?

2019-06-13 | Project Syndicate
BankTrack news BankTrack blog Partner news Partner blog

ICUN calls for moratorium on projects impacting rarest great ape species

2019-04-17 | Mongabay
BankTrack news BankTrack blog Partner news Partner blog

IUCN calls for a moratorium on projects impacting the Critically Endangered Tapanuli orangutan

2019-04-16 | IUCN
Blog
BankTrack news BankTrack blog Partner news Partner blog

Unlike its peers, Bank of China shows some interest in working with civil society on controversial Indonesian dam

2019-03-19 | Rey Edward – Friends of the Earth US
BankTrack news BankTrack blog Partner news Partner blog

Bank of China to evaluate Batang Toru hydropower plant project

2019-03-14 | The Jakarta Post
BankTrack news BankTrack blog Partner news Partner blog

Press conference WALHI : Open Letter to Bank of China

2019-03-12 | Kliktodaynews
BankTrack news BankTrack blog Partner news Partner blog

Rarest orangutans 'doomed' by Indonesia dam project

2019-03-05 | BBC News
BankTrack news BankTrack blog Partner news Partner blog

Bank of China’s Notes on the Hydroelectric Dam Project in Batang Toru of Indonesia

The bank's public response to the international day of action on Bank of China's finance for Batang Toru
2019-03-04 | Bank of China
BankTrack news BankTrack blog Partner news Partner blog

As Beijing Looks to Lead on Biodiversity, China-backed Hydropower Threatens to Wipe Out the Rarest Great Ape on Earth

Bank of China - financed Batang Toru dam threatens the Tapanuli Orangutan’s shrinking forest home
2019-03-03 | International Rivers
BankTrack news BankTrack blog Partner news Partner blog

Save Orangutans

Environmentalists from the Indonesian Forum for the Environment (Walhi) staged a rally in front of the Bank of China office in Jakarta on Friday in protest against a dam construction project in Batang Toru district, South Tapanuli, North Sumatra.
2019-03-02 | Jakarta Post
BankTrack news BankTrack blog Partner news Partner blog

Protests flare as pressure mounts on dam project in orangutan habitat

Activists in Jakarta and cities around the world staged protests outside Bank of China branches and Chinese diplomatic missions on March 1.
2019-03-01 | Mongabay
BankTrack news BankTrack blog Partner news Partner blog

PT NSHE Jelaskan Soal Proyek PLTA Batangtoru

(article in Indonesian)
2018-08-03 | Medanbisnisdaily
BankTrack news BankTrack blog Partner news Partner blog

Belt and Road Initiative could doom the world’s rarest ape (commentary)

2018-08-02 | Mongabay
BankTrack news BankTrack blog Partner news Partner blog

In China’s Belt and Road initiative, environmentalists see risky business

2018-08-01 | The Christian Science Monitor
BankTrack news BankTrack blog Partner news Partner blog

Indonesian activists protest China-funded dam in orangutan habitat

2018-05-09 | Mongabay
BankTrack news BankTrack blog Partner news Partner blog

China-backed Sumatran dam threatens the rarest ape in the world

2018-05-04 | Asiancorrespondent.com
BankTrack news BankTrack blog Partner news Partner blog

World’s newest great ape threatened by Chinese dam

2018-04-23 | The Guardian
BankTrack news BankTrack blog Partner news Partner blog

Protest against hydropower plant in Sumatra ends with injuries

2017-09-14 | Mongabay
Resources
Documents
Videos
Links
2021-08-31 00:00:00

Riverscope Case Study: Batang Toru, Indonesia Summary

Other document
2021-08-31 00:00:00 | International Rivers & TMP Systems
2020-01-31 00:00:00

Analysis of Electricity Demand in North Sumatra Province and the Planned Batang Toru Hydroelectric Power Plant’s Impacts

NGO document
2020-01-31 00:00:00 | Mighty Earth
2019-03-17 00:00:00

Letter from WALHI to Bank of China on Batang Toru Dam

Correspondence
2019-03-17 00:00:00 | WALHI
2017-10-26 00:00:00

Company profile PJB Investasi

Company document
2017-10-26 00:00:00 | PJB Investasi
2018-05-31 00:00:00

Damming Evidence

How the Batang Toru megadam threatens a new orangutan species with extinction
NGO document
2018-05-31 00:00:00 | Sumatran Urangutan Society, PanEco Foundation

New Species of Orangutan Is Rarest Great Ape on Earth | Nat Geo Wild

2018-08-21 10:39:54

New species of great ape discovered

2018-08-21 10:38:24

Sinohydro's environmental policy

Guidelines for Environmental Protection in Foreign Investment and Cooperation

As issued by the Chinese Ministry of Commerce March 1 2013

Indonesian Biodiversity Strategy and Action Plan 2015-2020

Kementerian Perencanaan Pembangunan Nasional/BAPPENAS

Batangtoru.org

Sumatran Orangutan Conservation Programme (SOCP)

Friends of the Earth Indonesia (WAHLI)

AVAAZ petition website to save the Tapanuli orangutans

Updates

2022

2022-06-19 00:00:00 | Chinese state-owned company SDIC Power invests in Batang Toru dam endangering rare orang-utangs

Chinese state-owned company, SDIC Power,  that trumpeted its green credentials when listing on the London Stock Exchange (LSE) has quietly acquired a development in Indonesia that scientists warn threatens the world’s rarest great ape. The company signed off plans to invest in the USD 277 million Batang Toru hydropower plant in Indonesia less than two months after completing a listing in 2020 that was backed by big western banks and strongly supported by the LSE (Financial Times).

2019

2019-03-14 00:00:00 | Bank of China to evaluate Batang Toru hydropower plant project

Bank of China has said it will evaluate its funding commitment to the Batang Toru hydropower plant project in North Sumatra amid environmental concerns. “Bank of China will evaluate the project very carefully and make prudent decisions by duly considering the promotion of green finance, fulfilment of social responsibility as well as the adherence to commercial principles,” the bank said in a statement posted on its website (The Jakarta Post).

2019-03-07 00:00:00 | Bank of China faces international day of action over Batang Toru finance

On March 1st, 2019, activists in cities around the world staged protests outside Bank of China branches and Chinese diplomatic missions to protest the bank's links to the Batang Toru dam. Wahli (Friends of the Earth Indonesia) and Friends of the Earth US helped to coordinate the actions. On March 4th, Bank of China responded, in a rare engagement from a Chinese bank, saying it "will evaluate the project very carefully and make prudent decisions by duly considering the promotion of green finance, the fulfilment of social responsibility as well as the adherence to commercial principles."

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