Indonesia’s Coordinating Ministry for Economic Affairs and the Japanese Ministry of Economy, Trade, and Industry (METI) have signed a letter of intent (LoI) on cooperation in developing the Kayan hydropower plant in North Kalimantan, according to reporting from Antara News.
“For Indonesia, the Kayan hydropower plant is not just an infrastructure project within the framework of AZEC (Asia Zero Emission Community),” the ministry’s Deputy for the Coordination of International Economic Cooperation Edi Prio Pambudi, said in a statement issued on Wednesday (5/3/25.)
“This project is a strategic investment for Indonesia’s energy security and decarbonization efforts,” he said.
He emphasized that as a strategic partner, Japan will help Indonesia implement energy transition projects and achieve net-zero emissions by 2060. Therefore, the Indonesian government has urged Japan to strengthen cooperation in implementing practical, scalable, and inclusive energy transition projects in the country, says Antara News.
Meanwhile, Deputy Commissioner for International Affairs at the METI Masanori Tsuruda said that the LoI on the development of the Kayan hydropower plant needs to be immediately followed up by both governments.
The development of the Kayan hydroelectric power plant is challenging, but he is confident that the good bilateral relations between Japan and Indonesia are a strong foundation for the development of this project, he added.
Antara News reports that as per information provided on the official website of PT Kayan Hydropower Nusantara, the project is expected to be Indonesia’s first large-scale renewable hydropower development to support hydro-industrialization.
Once completed, the hydropower plant will supply renewable energy to Indonesia’s largest green industrial park in Tanah Kuning, North Kalimantan.
With a capacity of 9,000 MW and a total investment of USD 17.8 billion, it is touted to be the largest hydroelectric power plant in Southeast Asia.
The project will also support Indonesia’s target of bringing the share of renewable energy in the national energy mix to 23 percent by 2025 and 31 percent by 2050, as a part of its commitment to a sustainable energy future.
Source: Antara News
