Sumitomo, Kayan Hydro Energy to Develop US$17.8 Bln Hydropower Plant

PT Kayan Hydro Energy is teaming up with Japanese company Sumitomo Corporation to build the Kayan Cascade hydropower plant (PLTA) in Bulungan Regency, North Kalimantan. This plant will require a whopping US$17.8 billion investment. Both companies will also carry out more green energy projects in the province using the electricity generated from the plant. Kayan Hydro Energy president director Andrew Suryali specified that the Kayan Cascade hydropower plant would have a total capacity of 9,000 megawatts (MW), consisting of five dams, and be equipped with five to six turbines. The electricity it produces will supply a green industrial area developed by PT Indonesia Strategic Industries (ISI). "To supply electricity needs on the island of Kalimantan, the project, which has been taking place since 2011, has completed all necessary permits," he said Thursday.

Sumitomo's decision to join the Kayan Cascade hydropower project was driven by the good condition of the Kayan River. Besides, the project has already secured important permits and is well-planned. "So, this is a combination of expertise, decent natural resources, as well as the government's permits and supports," Eko Permanahadi, Chief Representative of Sumitomo Corporation Jakarta Project Coordination Office, elaborated.