Jakarta – Singapore-based diversified group Gallant Venture has unveiled plans to develop a 2 GW coal-fired power plant and a 400 MW solar photovoltaic (PV) farm in Batam, Riau Islands Province.
The power plants will be developed through its wholly-owned subsidiary, PT Batamindo Investment Cakrawala (BIC), with a total project cost between USD 2 billion and USD 3 billion, Gallant said in a statement to the Singapore Stock Exchange dated June 9, 2025.
The planned investment will include all associated equipment and systems to facilitate the generation, transmission, and distribution of electricity generated by the Power Plants and Solar Farm. It said that after evaluating various options, the Group has determined that a coal-fired power plant was chosen as it represents the most cost-effective solution.
It stated that the power plant projects will be developed in two phases. Phase 1 development will consist of three 350 MW Supercritical coal-fired power plants and supporting infrastructure, catering to a 2 GW facility located in Pulau Setokok, Bulang, Batam, approximately 15 km south of the BIP.
Phase 2 consists of two 600 MW Supercritical coal power plants, a 400 MW Solar PV plant, and submarine transmission cables connecting the Power Plants and Solar PV to the Group’s Batam, Bintan, and Bulan power plants, it said.
The estimated cost for Phase I of the project is expected to reach USD 1.5 billion, and Phase 2 is estimated to be approximately USD 1.2 billion to USD 1.5 billion.
This Project will not only support ongoing expansion within the Group’s industrial and resort segments, as well as outside the BIP, but also reduce reliance on volatile natural gas sources, thereby securing long-term energy resilience for the Group’s operations, it said.
Environmental concerns
The Group recognises the environmental concerns associated with coal-fired power generation, particularly those related to greenhouse gas emissions and air quality. In response, and in alignment with broader economic and environmental objectives, a range of mitigation strategies will be adopted. These include the procurement of supercritical coal-fired power plants to improve efficiency and reduce emissions, as well as the exploration of carbon capture and storage solutions.
To offset the environmental impact of the power plant projects, the Solar Farm will be integrated as a supplementary energy source. In parallel, the Group will continue to expand its solar PV capacity across industrial parks and resort segments to enhance energy diversification and sustainability further, it said.
The Group, it said, is also committed to working closely with regulatory authorities to ensure full compliance with environmental standards. In addition, it will engage with local communities and environmental organisations to ensure that the development of the Power Plants aligns with both environmental responsibilities and local social priorities.
Gallant Venture said it believes that this project will create long-term value for its shareholders and contribute positively to the Group’s sustainable growth.
PT BIC is a private limited liability company incorporated in the Republic of Indonesia and the owner and operator of the Batamindo Industrial Park (BIP), one of the largest and most established industrial parks in Batam, Indonesia. Covering approximately 320 hectares, the BIP is strategically located near Singapore, serving as a vital gateway between the two countries.
Demand for reliable power surges
The Riau region and neighbouring countries are experiencing accelerated industrial activity. Batam has evolved into a strategic industrial hub, bolstered by its free-trade zone status, investor-friendly policies, and proximity to Singapore. Additionally, the proliferation of energy-intensive sectors, particularly AI-driven digital industries and data centres, has placed mounting pressure on existing power infrastructure in Batam.
Current reserve margins in Batam are inadequate, resulting in delays in energy provision for new investors.
The development of the above power plants aims to meet the growing demand for reliable power generation in the region. By 2029, power consumption in Batam alone is expected to increase considerably, driven by regional economic expansion and the Group’s expansion plan, which includes the expansion of Bintan Industrial Estate (BIE) and Bintan Resorts, adding 2,000 new room keys in the next few years.
Furthermore, regional economic developments may have a spillover effect on the neighbouring countries and accelerate developments in industrial islands such as Batam and Bintan. This will further drive demand in the Batam and Bintan region for a reliable power supply, thus making PT BIC’s investment in new power plants essential.
The development of the power plants will help ensure energy security, support industrial growth, and reinforce the Group’s position as a leading infrastructure provider in the region, Gallant Venture said. (Roffie Kurniawan)
Banner photo: Cirebon-1 PLTU with a capacity of 660 megawatts (MW). (Source: Cirebon Electric Power)
