Social Conflict Risk Analysis in the Power Infrastructure Construction Project (Case Study: A Geothermal Power Plant Development Project in Sumatra, Indonesia)

Authors

  • Verani Hartati* , Herman Susatyo

Abstract

The process of building electricity infrastructure in the form of power plants, electricity
transmission, distribution of electricity, substations and other supporting facilities is currently being
accelerated by the government through Presidential Regulation of the Republic of Indonesia Number 14 of
2017 concerning Acceleration of Development Electricity Infrastructure. However, in the course of this
infrastructure development, there are often social and environmental constraints, namely the occurrence of
social conflicts between the community around the project environment and the electricity infrastructure
construction contractor. As a supplier of electricity in Indonesia, PLN and IPP (Independent Power
Produces) determined that land acquisition issues, environmental issues, and social issues are potential
causes of risk that can occur during the pre-construction and construction period. Considering that the
additional capacity target per year is quite large (an average of around 5,400 MW per year), the potential
impacts that can arise from this risk include an increase in Cost of Production due to not achieving the fuel
mix target, to blackouts due to a deficit in power generation capacity. This study aims to determine what risk
variables and indicators affect the occurrence of social conflict and how to plan for handling (mitigating) the
risk of social conflict. The survey was conducted by taking data directly to the project site with
questionnaires and interviews with respondents who handled these social conflicts. By using the Failure,
Mode and Effect Analysis (FMEA) method, it can be seen that there are 12 critical risk indicators, with the
highest RPN value of 320 owned by the critical risk indicator for breaking the work contract or the end of
the work contract, mismatching of agreements during land acquisition and during project implementation. as
well as land access road conflicts. The risk response must be carried out jointly between the contractor and
the project owner in order to avoid the occurrence of the same social conflict in the future.

Published

2020-10-15

Issue

Section

Articles