Jakarta – Indonesia and Japan signed a Letter of Intent Cooperation (LOI) for the development of the Kayan Hydropower Plant (PLTA) in North Kalimantan, the Japanese representative said in a written statement, Wednesday, March 5.
The LOI in Implementing Kayan Hydropower Project was signed by the Ministry of Economy, Trade and Industry (Meti) of Japan and the Coordinating Ministry for Economic Affairs of Indonesia. Meti’s Deputy Commissioner for International Affairs, Masanori Tsuruda, said that Japan is ready to support this project with various strategic measures required.
“The challenges in building the Kayan Hydropower Plant are great, but with the strong bilateral relationship between Japan and Indonesia, we are confident that this project can be realised,” Masanori said, adding that this cooperation is part of Japan’s commitment to support the energy transition in the Asian region.
Deputy for Coordination of Economic Cooperation and Investment at the Coordinating Ministry for Economic Affairs, Edi Prio Pambudi, stated that the Kayan Hydropower Plant is an important project for Indonesia, not only in the context of decarbonisation but also in strengthening national energy security. “The Kayan Hydropower Plant is a strategic investment that will help Indonesia achieve its green energy targets and support the achievement of NZE 2060,” he said.
As part of the Asia Zero Emission Community (AZEC) platform, the project has been categorised as a potential project ready for commercialisation. In the 2024 Expert Group Meeting, Kayan Hydropower was included in category II along with peatland management projects and the development of the Java-Sumatra transmission network. This shows the readiness of the project to enter the next stage after the completion of the feasibility study.
This cooperation is also expected to accelerate the development of clean energy infrastructure in Indonesia, in line with the government’s push to expand the utilisation of new renewable energy.
“The Indonesian government encourages Japan to continue strengthening collaboration in the implementation of practical, scalable, and inclusive energy transition projects,” Edi said.
The Kayan Hydropower Plant is projected to be one of the largest hydropower plants in Southeast Asia with a capacity that can support the electricity needs of green industries in Indonesia. With the synergy between Indonesia and Japan, this project is expected to become a model for sustainable energy development in the region and accelerate the achievement of carbon neutrality targets in the future. (Hartatik)
Banner photo: Sketch of Kayan Hydropower Project (Dinas ESDM Kalimantan Utara/handout)
