Supporting President Jokowi's Hope To Grow A Green Economy, PT KHE Develops Kayan Cascade Hydroelectric Power Plant

JAKARTA - Supporting President Jokowi's hope to strengthen economic development based on innovation and technology, especially towards a green economy and a sustainable blue economy, PT. Kayan Hydro Energy (KHE) has developed the Kayan Cascade Hydroelectric Power Plant (PLTA).

Quoting President Jokowi's speech at the MPR Annual Session and Joint Session of the DPR and DPD, August 16, 2021, Monday (16/8), which said the transformation towards new and renewable energy, as well as economic acceleration based on green technology, would be an important change in the Indonesian economy. "This is exactly right. In accordance with the expectations expressed by President Jokowi during his state speech yesterday, KHE is developing the Kayan Cascade Hydroelectric Power Plant (PLTA) which will contribute greatly to reducing global greenhouse gas emissions," said Khaeroni, Operational Director of PT KHE.

The Kayan Cascade hydropower plant, which was pioneered by KHE, started in 2011 utilizing the area along the Kayan river. Consisting of 5 dams with 5-6 units of turbine generator in each dam. The first stage of the Kayan Cascade hydropower plant has a capacity of 900 MW, the second stage is 1,200 MW, the third and fourth stages are 1,800 MW each, and the fifth stage is 3,300 MW. The investment value of KHE for this hydropower plant reaches 17.8 billion US dollars. "The electricity generated from the hydropower plant will be used for industrial and port needs," said Khaeroni.

In addition, the electricity generated by Kayan Cascade can be absorbed by the Tanah Kuning industrial area. There are nickel ore processing plants, steel, aluminum and an international port in Kaltara. It can even supply the new nation's capital in East Kalimantan.

Khaeroni further said that the Kayan Cascade project is actually part of the Kaltara Integrated Green Economic Zone concept which covers 4,686 hectares belonging to PT Indonesia Strategic Industries (ISI), an industrial estate management company that is part of the Green Industrial Estate which is integrated with the Indonesian International Port. "This hydropower project is targeted to operate commercially in 2025," he said.

KHE supports the project to produce an environmentally friendly renewable energy source. The Green Industrial Estate will be developed and managed by PT ISI. The management has also signed a memorandum of understanding (MoU) with various tenants, including aluminum smelter PT Alum Ina Indonesia, steel factory PT Prime Steel Indonesia, ferronickel smelter PT Nickel Industri Indonesia, electric vehicle factory PT Indonesia Emobil Industri, and its battery manufacturing partner, PT General Battery Indonesia. Hydroelectric power is not only environmentally friendly but also very competitive with electricity produced from fossil energy, "concluded Khaeroni.

Citing data from the Directorate General of Electricity at the Ministry of Energy and Mineral Resources (ESDM), the installed capacity of New and Renewable Energy (EBT) plants until May 2021 is only 10,426 megawatts (MW). Of this amount, hydropower contributed 4,701 MW on-grid and 938 MW off-grid.

Concern for PT KHE, which developed the Kayan Cascade hydropower plant, is actually in line with President Jokowi's expectations, which wants economic growth based on innovation, technology and a sustainable green economy.