Kantongi IPPKH, PT Kayan Hydro Energy Tancap Gas Bangun PLTA Kayan Cascade

Operational Director of PT Kayan Hydro Energy, Khaerony (Wardhani Tsa Tsia/VOI)

JAKARTA - PT Kayan Hydro Energy will step on the gas to build one of its five dams on the Kayan River, Peso District, Bulungan Regency, North Kalimantan Province for the Kayan Cascade Hydroelectric Power Plant (PLTA).

The development was carried out after the Borrow-to-Use Forest Area Permit (IPPKH) was issued by the Investment Coordinating Board (BKPM). With the construction of this dam, it is hoped that production can start in 2022.

"The target is that by 2022 we will start production and start with the PT Kayan Hydro Energy dam," said PT Kayan Hydro Energy Operations Director, Khaerony at a press conference held at the JW Marriot Hotel, Kuningan, South Jakarta, Wednesday, December 22.

This development is in line with the green economy development campaign that has always been echoed by President Joko Widodo (Jokowi). In the campaign, the former Governor of DKI Jakarta always reminded Indonesia that it has the potential for renewable energy and extraordinary hydropower potential because it has 4,400 rivers, one of which is the Kayan River.

Khaerony then explained that his party had done various things related to electrification for industrial and port needs. The technical, social, economic, cultural studies, as well as the socialization and licensing process for the hydropower development have been completed.

Even PT Kayan Hydro Energy has received a 5A 3 rating from Dun & Bradstreet. "So it's not true if KHE doesn't work or there are no developments like what was circulating in the media," he said.

In addition, the company has carried out various activities both in the field and at the central and local governments in accordance with applicable regulations, primarily to obtain permits and recommendations needed to build dams. This activity, continued Khaerony, has been carried out since 2011.

Furthermore, although the BKPM permit for one dam has been issued, there are still other permits that have not been issued. Even though all the conditions have been met.

“The Borrow-to-Use Forest Area Permit (IPPKH) for Dam 1 was just issued last week from BKPM. Meanwhile, other dams are still on hold, while we have been waiting for almost two years," he said.

This is certainly unfortunate, because the requirements and obligations that must be carried out have been implemented. "The permits for other dams should also have been issued because we have fulfilled all the requirements and obligations," said Khaeroni.

This condition then made him wonder. In fact, with the issuance of the Omnibus Law on Job Creation, it should be possible to accelerate the granting of permits.

However, on the ground the reality is actually different because it has to wait almost two years at the BKPM regarding the issuance of this permit. "How are we going to work, if the permit for the dam is still being held? So far we have only worked outside the forest area. If we work in an area whose permit we have not yet secured, it will violate the law," said Khaerony. For information, PT Kayan Hydro Energy has carry out land acquisition and infrastructure work from local government roads to hydropower plants and explosives warehouses for dams and road construction.

In addition, the company has prepared the infrastructure to support the construction of the Kayan Cascade hydropower plant. The total investment value of KHE for this hydropower plant reaches 17.6 billion US dollars.

While the Kayan hydropower plant is targeted for completion in 2025 according to the initial plan. "If all the permits are in order, we are optimistic that it will be completed according to the target and run optimally," said Khaerony.

"Where we are also collaborating with the Green Industrial Estate and the Tanah Kuning-Mangkupadi International Port so that later the large power source from this hydropower plant can be integrated into their main power source," he concluded.