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Japanese Energy Company Explores Investment In Kayan Cascade Hydropower Project In North Kalimantan

The Indonesian Embassy in Tokyo, under the leadership of Ambassador Heri Akhmadi, hosted a business dinner on Thursday, July 18, 2024. The event was held at the Ambassador's residence to welcome the upcoming 2nd AZEC Ministerial Meeting, and was attended by executives from eight leading Japanese energy companies, including Mr. Takashi Nakamura (J-Power), Mr. Suguru Kawabata (Sojitz Corporation), Mr. Seiji Kawamura (Marubeni Corporation), Shunta Kijima (JERA Co. Inc), Mr. Hiroshi Hashiuchi (Tepco Renewable Power Inc), Mr. Masahiko Umesaki (Kansai Electric Power Co. Inc) and Mr. Takechi Muramatsu (Sumitomo Corporation).

From Indonesia, present were PT Kayan Hydro Energy (KHE) Owner, Tjandra Limanjaya; Andrew Sebastian Suryali, CEO of PT KHE; Steven Kho, Executive Committee of PT KHE; Eko Permanahadi, President Director of Great Eagle Pte. Ltd.; Iwan S. Triawan, Vice President of Business Development at PT. PLN (Persero), and Dr. Edi Prio Pambudi, Deputy Minister for International Economic Cooperation at the Coordinating Ministry for Economic Affairs of the Republic of Indonesia who joined virtually.

During the event, PT KHE as the initiator and owner of the project presented the latest developments and business prospects of the Kayan Cascade Hydropower Plant. They also officially announced that their cooperation with Sumitomo Corporation has ended.

"Our cooperation with Sumitomo Corporation has ended. We are opening opportunities for anyone who wants to be involved in the Kayan Cascade Hydropower Plant project," said Andrew Sebastian Suryali in a press release in Jakarta on Monday, July 22.

Andrew explained that the Kayan Cascade Hydropower Plant is a strategic project in Indonesia's green energy program. "We see them welcoming this project and it will be followed up in a business to business (B2B) manner. In principle, we are opening opportunities for everyone to collaborate," he added.

With the relocation of Indonesia's capital from Jakarta to Nusantara on the island of Kalimantan, the focus on sustainable infrastructure development becomes more crucial. Indonesia, as part of the Asia Zero Emission Community (AZEC) initiative, emphasizes sustainability, green technology, and emission-free energy production.

PT Kayan Hydro Energy, the driving force behind the Kayan Cascade Hydropower Project, presented its grand plan at the dinner reception. This project aims to build a series of hydropower plants along the Kayan River Basin. This effort is supported by both the public and private sectors, including commitments from PT. PLN (Persero) and PT. Indonesia Strategis Industri who are developing the Integrated Green Economic Zone. The development project of the 9000 MW hydropower plant is estimated to cost around USD 17.8 billion, including the construction of transmission lines and substations. The presentation of the Kayan Cascade Project captivated the participants, highlighting the potential annual electricity output of 36 Terawatt-hours. This project is expected to accelerate the environmentally friendly energy transition in Kalimantan, significantly reducing the national electricity costs. The Japanese company's investment in this project not only supports the AZEC initiative but also strengthens Indonesia's journey towards environmentally friendly energy transition without compromising energy security. Ambassador Heri Akhmadi emphasized the importance of the Kayan Cascade Project as one of the key projects within the AZEC Framework and aims to be one of the deliverables in the next AZEC Ministerial Meeting. The Deputy Minister of International Economic Cooperation at the Coordinating Ministry for Economic Affairs of the Republic of Indonesia also stated that this project, once completed, will be one of the key projects that will accelerate Indonesia's transition to green energy while reducing national electricity costs.

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Tag: Japanese Energy Company Kayan Cascade North Kalimantan