Cooperation With Sumitomo Corporation Completed, KHE: There Are Differences In Commercial Views

Photo: (Theresia Agatha/VOI)

PT Kayan Hydro Energy (KHE) has completed a collaboration with Sumitomo Corporation in financing the construction of the Kayan Cascade Hydroelectric Power Plant (PLTA) in North Kalimantan (Kaltara).

This was conveyed directly by the Executive Committee of PT KHE Steven Kho to reporters when met at the Kayan hydropower plant, Tanjung Selor Hilir, Bulungan Regency, Kaltara, Thursday, May 30.

"As of the first quarter of 2024, it has ended (its cooperation)," he said.

Steven also confirmed that there are no more common visions and missions, including PT KHE and Sumitomo Corporation.

"There are differences in commercial views that are not found," he said.

However, he was unable to reveal in detail what commercial differences meant so that the cooperation ended.

This is because it is confidential information between the two parties.

"We cannot tell who ended this cooperation, because that is confidential information that must be stored between us and Sumitomo," he said.

Even so, he continued, KHE is currently opening cooperation with all parties. Including from the Japanese and Chinese parties.

Meanwhile, Sumitomo Executive Manager Kenichi Ishikawa confirmed that Sumitomo's cooperation with KHE ended. However, he did not deny that his party would continue to discuss with PT KHE for future projects that might be cooperated.

"We will continue to discuss cooperation in the future," he added.

Previously, PT Kayan Hydro Energy (KHE) collaborated with Sumitomo Corporation in financing the development of the Kayan hydropower plant, as well as exploring the development of green industry in North Kalimantan (Kaltara) by utilizing energy from the hydropower plant to be built.

KHE President Director Andrew Suryali said this cooperation has an investment value of 17 billion US dollars.

The launch of a collaboration between PT Kayan Hydro Energy and Sumitomo Corporation for the Kayan Cascade Hydropower Development Project was held at the Fairmont Hotel, Jakarta, Thursday, October 6, 2022.

Andrew Suryali said KHE and Sumitomo agreed to become partners in the construction of the Cascade hydropower project, which is a green energy power plant project and exploring the construction of green industry in North Kalimantan by utilizing the energy from the hydropower plant to be built.

Meanwhile, KHE is the initiator and developer of the Kayan Cascade hydropower project located in Peso District, Bulungan Regency, Kaltara Province, with a capacity of 9,000 Megawatts (MW) which are divided into five dams.