Jalan Panjang Sungai Kayan Hydropower Development

JAKARTA - The Kayan River Hydroelectric Power Plant (PLTA) Development Plan in Long Peso District, Bulungan Regency, North Kalimantan began a long time ago. The construction of the hydropower mega-project began with a groundbreaking mark on January 18, 2014.

The event was attended by the Governor of East Kalimantan Awang Faroek Ishak (newly expanded Kaltara), Deputy Minister of Energy and Mineral Resources (ESDM) Susilo Siswoutomo, TNI Commander General Moeldoko, Head of BKPM Mahendra Siregar, Acting Governor of Kaltara Irianto Lambrie and Bulungan Regent Budiman Arifin .

What needs to be known is that building a giant project with a capacity of 9,000 Mega Watt (MW) is not easy.

The total investment value reached USD17.8 billion or more than IDR250 trillion. In this first phase, two dams will be built with a capacity of 900 MW and 1,200 MW respectively. The supporting infrastructure, dam I and dam II are expected to be completed in 2025, and continue to build dam III, IV, and V which are all targeted for completion in 2029.

From the investment side, the Kayan River hydropower plant needs US $ 22.5 billion or the equivalent of Rp. 315 trillion. The investment problem has been resolved, namely in addition to involving the private sector PT. Kayan Hydro Energy (KHE) also attended by BUMN in the dam physical construction project, namely PT. Waskita Karya (Persero) and PT. Hutama Karya (Persero).

Meanwhile, the land that must be acquired reaches 12,000 hectares, so it needs an in-depth study and the licensing process involves various parties.

Not to mention ecological, socio-economic, and even cultural problems are also included. Because it is estimated that the construction of the dam will drown several villages and hundreds of people will have to be relocated.

It is estimated that hundreds of residents of Long Peleban and Long Lejuh Villages, Peso District, Bulungan Regency must be relocated to new residential areas.

The two villages, covering an area of 619 hectares, which are occupied by around 800 people, are included in the dam construction area. Settlements in the two villages were immediately relocated before the first seven years of the dam construction.

Through an intensive approach, involving rural community leaders who were also the Deputy Regent of Bulungan, Ingkong Ala, finally 67 heads of families (KK) living in Long Peleban Village and 98 families in Long Leju Village were willing to move to a new settlement location.

The relocation stage turned out to be difficult, starting from the agreement, compensation for land and finding new residential land. It takes central to regional regulations related to relocation, especially village boundaries, especially since the relocation is in the Forestry Cultivation Area (KBK).

The 9,000 MW capacity comes from five dams that were built in stages on the Kayan River - one of the longest and largest rivers in Kalimantan.

The first dam is projected to produce 900 MW, the second dam has a capacity of 1,200 MW, the third and fourth dams each produce 1,800 MW, and the fifth dam has a capacity of 3,200 MW.

It is estimated that the construction of the Kayan PLTA phase I will be completed in 2024. In 2024 the construction of the Kayan PLTA phase II will also begin.

The Governor of Kaltara Irianto Lambrie on Thursday, 17 September, met with TNI General (Ret.) Dr Moeldoko, the Chief of Presidential Staff (KSP) to report on the development of the Kayan River Hydroelectric Power Plant.

Moeldoko said that in accordance with the authority and main tasks and functions (Tupoksi) of KSP, one of them is to pay attention to, guard and assist the acceleration of development in Kaltara to realize the welfare of its people.

Including, in terms of accelerating the construction of PLTA Kayan, which is currently in the process of starting its pre-construction.

This is inseparable from the government's program to overcome the electrical energy crisis by building 35,000 MW.

On that occasion, Irianto reported the development and progress of matters related to the plan to accelerate the realization of the PLTA development.

A few days earlier, the KSP Team led by Deputy I KSP Febry Calvin Tetelepta visited the location in Long Peso.

Irianto conveyed his suggestion that the APBN allocate a budget for the construction of road access from Tanjung Selor-Peso.

The goal is not only to facilitate the mobilization of people in the upstream area, the road is also important as an access for mobilizing equipment and materials to the location of the PLTA construction.

The distance from Tanjung Selor (the capital city of Kaltara) to Long Peso by land is about 4 hours with many damaged roads, some of which are only 120 kilometers in length.

Meanwhile, through the river it takes about 3.5-5 hours using a speedboat or longboat.

Moeldoko responded positively to the proposal, and promised to discuss it further, by involving relevant ministries, such as the PUPR Ministry, as well as BUMNs involved in hydropower development.

Iriant explained to reporters that after the meeting, building a hydropower plant would take a long time.

In many countries as well, he gave an example of the Three Gorges dam in China which took decades to be able to realize a large capacity hydropower plant.

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The construction of the Kayan River Hydroelectric Power Plant is again experiencing obstacles this time due to the outbreak of the COVID-19 pandemic.

Kaltara Governor Irianto Lambrie admitted this, for example the process of mobilizing heavy equipment and containers shipments from Surabaya to Tanjung Selor should have been in early March 2020 but failed due to the pandemic.

PT. KHE, as the project initiator promised to keep trying to mobilize heavy equipment and equipment to the Kayan I hydropower plant construction point.

In addition to the equipment, in the delivery there are also a number of containers that will later become offices, mess employees.

The existence of PLTA is very strategic because with a capacity of 9,000 MW it is not only able to meet the electricity needs in Kaltara - only around 150 MW - even for the East Kalimantan region.

The three main areas in East Kalimantan - Kutai Kartanegara, Balikpapan and Samarinda - have a peak electrical energy requirement of around 500 MW.

So that the existence of the Kayan River Hydroelectric Power Plant is increasingly strategic with the designation of East Kalimantan as the new State Capital (IKN), Kaltara automatically becomes a buffer area.

The excess electricity capacity of the Kayan River hydropower plant is also projected to be sold not only to the provinces in Kalimantan but also to Sabah and Sarawak, considering that Kaltara is directly adjacent to the two states in East Malaysia.

The Kayan River hydropower plant is also integrated with the construction of the Tanah Kuning - Mangkupadi Industrial Estate and International Port (KIPI).

The development of KIPI is expected to encourage electricity growth in Kaltara to increase by 50 percent from current conditions.

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From these various strategic meanings, it is fitting that the Kayan River hydropower plant should receive special attention from the president so that its development is directly monitored by KSP.

In several visits to Kaltara, President Jokowi directly reviewed it, although due to geographical conditions and infrastructure weaknesses, this activity was only carried out by air.

Including the observation of the location of the hydropower plant by air on December 19, 2019.

President Joko Widodo accompanied by Seskab Pramono Anung, Minister of Home Affairs Tito Karnavian, Minister of Energy and Mineral Resources Arifin Tasrif and Governor Irianto Lambrie visited the location of the Kayan River Hydroelectric Power Plant during a trip using the presidential helicopter from Tarakan to Long Bawan, Krayan, the border in Nunukan Regency.

The trip along the Kayan River observes from the air the location of PLTA Kayan 1 and Kayan 2.

The President again directed the Kayan River Hydroelectric Power Plant in Long Peso Bulungan to immediately resume construction at the 2019 Annual Meeting of Bank Indonesia (PTBI) Jakarta.

The President emphasized that he would continue to monitor the progress.

The President emphasized that the Kayan River hydropower plant is one of the new sources of Indonesia's economic growth going forward.

The PLTA Kayan will also increase the capacity of "competitive Indonesia". Through PLTA, there will be savings in electricity production costs.

The reason is, so far, when relying on coal, the cost of providing electricity (BPP) has reached 6 to 7 US cents, while using BPP's hydro power is only about 2 US cents.

Jokowi hopes that with the use of hydro power, investors will come to Indonesia, especially Kaltara.

The PLTA mega project development is part of the National Strategic Project (PSN) based on Presidential Regulation (Perpres) No. 58/2018, so that the progress will be periodically reported to the President of the Republic of Indonesia.

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