PT Kayan Hydro Energy (KBE) Supports Jokowi's Efforts To Develop Green Industrial Estates In Kaltara

Kayan Hydro Energy PLTA construction site (Photo: Special)

JAKARTA - President Joko Widodo is focusing on developing a green economy, including a green industrial park. PT Kayan Hydro Energy (KHE) is in line with Jokowi's move by implementing a Hydroelectric Power Plant (PLTA) project in North Kalimantan.

Previously, when opening the 2021 National Development Planning Deliberation (Musrenbang) on May 4, 2021 at the State Palace, Jokowi emphasized the importance of developing an environmentally friendly green industry. The electrical energy used to meet the needs of the green industrial area also comes from new and renewable energy (EBT).

"The transformation of new and renewable energy must begin. Green economy, green technology, and green products must be strengthened in order to compete in the global market. And, we have planned the construction of a green industrial park, a green industrial area in North Kalimantan," Jokowi said at the time.

At that time, Jokowi hoped that hydro power in the Kayan River, North Kalimantan, could be utilized optimally. This energy source will produce green energy, new renewable energy.

Jokowi reiterated his desire at the virtual P4G (Partnering for Green Growth and Global Goals 2030) Summit, Sunday (30/5/2021). He said, Indonesia is developing the largest green industry in the world in North Kalimantan which has great potential in developing renewable energy.

KHE is very supportive and in line with the government's efforts. In fact, KHE has developed the green energy concept since 2011. KHE is the initiator and initiator of the hydropower project consisting of five Cascades on the Kayan River, Long Peso District, Bulungan Regency, North Kalimantan.

Director of Operations KHE Khaeroni said he had done various things related to electrification for industrial and port needs.

"Since ten years ago, we have started what President Jokowi said. Technical, social, economic, cultural studies, as well as socialization and the licensing process for hydropower development have been completed," he said.

In fact, continued Khaeroni, KHE has received a 5A3 rating from Dun & Bradstreet. Since 2019 KHE has carried out pre-construction work and this year KHE has prepared initial construction support infrastructure activities for the construction of the Kayan Cascade hydropower plant which has the potential to generate 9,000 megawatts of electricity.

KHE has done, among other things, construction of roads from the local government road to the location of public facilities along 4.2 kilometers. In addition, the project and construction of a road from public facilities to the Kayan Cascade hydropower plant is 7 kilometers.

KHE has also delivered project equipment, built explosives storage warehouses to facilitate work, and many other activities. After the construction of the explosives warehouse is complete, KHE plans to immediately carry out blasting work to build a road to the dam site. This activity is carried out outside the forest area.

"Because the Borrow-to-Use Forest Area Permit (IPPKH) is waiting for determination by the relevant agencies. The requirements and the complete process have been fulfilled and have been approved in principle by the Ministry of Environment and Forestry (KLHK), but they are still waiting for stipulation, "said Khaeroni.

KHE's investment value for this hydropower plant has reached 17.8 billion US dollars, of which more than Rp. 2 trillion has been disbursed by KHE. This figure does not include infrastructure financing and industrial development.

KHE has also signed an engineering, procurement, and construction (EPC) contract with Sinohydro Corporation Limited, one of the largest hydropower developers in the world, on October 31, 2018.

"The target for the Kayan hydropower plant is still in accordance with the initial planning, namely construction is completed in 2024 and the commercial operation date (COD) stage is in 2025," added Khaeroni.

"We hope that this hydropower development project will run optimally so that later this large power source can be integrated with the Tanah Kuning-Mangkupadi Industrial and International Port and Industrial Estate (KIPI)," he continued.

In the industrial area, PT Indonesia Strategis Industri (ISI) as a KHE synergy partner is also conducting various field activities, including land acquisition.

“We have already obtained the permit, and we are currently carrying out land acquisition of around 1,500 hectares for this year and will continue to reach 5,000 hectares. After the land acquisition is complete, next year we will continue with the stages of land preparation, namely in the form of stockpiling, compaction, and so on,” explained Khaeroni.