According to local and regional newswires, including Channel News Asia, President Joko Widodo has broken ground and launched the construction of a USD 2.6-billion hydropower plant in North Kalimantan.
The 1,375 gigawatt Mentarang Induk power plant, is being developed by PT Kayan Hydropower Nusantara, a joint venture between Indonesia’s PT Kayan Patria Pratama Group and Malaysia’s Sarawak Energy Bhd and will be linked to an industrial park in North Kalimantan the president said will house electric vehicle and battery plants as well as aluminium and petrochemical facilities, say Channel News Asia.
The president said the hydropower project is expected to finish construction in seven years to power the planned park.
“Our hope is that Indonesia’s economic transformation would really take place toward a green economy,” Jokowi said at the ground-breaking ceremony.
Indonesia is a major thermal coal producer and relies on it as its main source of power but has pledged to reach net-zero emissions before 2060.
Indonesia aims to increase the proportion of renewables in its energy mix from the current 12-percent to 23-percent by 2025. While less emissions-intensive than coal, environmentalists agree that dams for hydropower alternatives can also cause issues like disruption of water flow, sediment flow and ecosystems.
Source: Channel News Asia