by: Hartatik
Jakarta – PT Kayan Hydro Energy (KHE) said there is no problem regarding the location permit for the construction of hydropower plants on the Kayan River, Bulungan Regency, North Kalimantan. Moreover, the authority to grant location permits has changed from the local government to the central government.
Kayan Hydro Energy Operations Director Khaeroni said that KHE had completed all licenses for constructing the Sungi Kayan dam and hydropower plant (PLTA) project.
“Including the request for a redesign of the dam, which is considered not suitable for the location of the Directorate General of Water Resources (SDA) of the Ministry of Public Works and Public Housing (PUPR),” said Khaeroni, Sunday, January 7.
According to him, the final decision from the Directorate General of SDA after a meeting with the president’s staff in Jakarta was that the dam’s construction would continue without moving the location, namely in Peso District, Bulungan Regency, North Kalimantan.
Previously, PT KHE was asked to redesign the Kayan Hydropower Dam because it did not fit the location. In addition, the location permit for hydropower development on the Kayan River has expired, as stated in Bulungan Regent Letter Number 503, dated February 21, 2022.
To continue the construction of the Kayan I Dam, PT KHE must resubmit an application for a design review and an application for a construction implementation permit by completing the requirements based on the Laws and Regulations.
The provision was conveyed through letter Number SA 0403-As/1491 dated September 13, 2023, regarding notification from the Director General of Water Resources (Dirjen SDA) to PT KHE regarding reviewing the dam design approval.
Based on this letter, the Director General of Natural Resources stated that the Dam Design approval dated July 22, 2020, owned by PT KHE, must be reviewed. KHE’s Dam Construction Implementation Permit, dated July 22, 2020 is declared invalid, and PT KHE must stop the construction of the Kayan I Dam.
“We have gone through all the mechanisms from the region to the centre. At the ministry, we have also received the permit. In the past, it was called a location permit, but now the nomenclature has changed to KKPR (Conformity of Space Utilization Activities),” Khaeroni said.
Regarding the latest progress of the development project, Khaeroni emphasised the company’s target to complete the construction of the first dam by 2027.
The first phase of the Kayan River Hydropower Plant will be able to generate green electricity with a capacity of up to 900 megawatts (MW), once the dam is in commercial operation. Furthermore, this electricity will be distributed to the National Capital Region (IKN) in Penajam Paser Utara Regency, East Kalimantan.
“The total capacity is 900 megawatts for dam I. Some users will enter the industrial area, and we will also support the national capital in IKN,” said Khaeroni.
Interestingly, the supply of green electricity from the Kayan Hydropower Plant to IKN will use the electricity transmission network owned by PT PLN (Persero). However, Khaeroni has not been able to provide further details on this matter.
Awaiting official permits
In addition, KHE is still waiting for an official request from the government regarding electricity supply to IKN.
In addition to IKN, Kayan Hydropower will also provide green electricity to the Indonesian Green Industrial Zone (KIHI) in Kaltara, which is managed by PT Kalimantan Industrial Park Indonesia (KIPI) and PT Indonesia Strategis Industry (ISI).
Khaeroni expressed the importance of supporting major government projects, especially those focusing on green energy. “Because this is a big government project, we also have to support it, because at IKN, the President said that there must be green energy. There is no carbon burn,” he added.
In this context, Khaeroni emphasised that hydropower is one of the stable and environmentally friendly power plants. “The green ones are solar, hydropower, wind. But the most stable generator is water. So it is fitting that KHE is supporting IKN for its green,” he concluded.
Meanwhile, the Deputy Regent of Bulungan, Ingkong Ala, stated that monitoring of the project’s progress continues because private investment has the potential to have a major impact on various sectors of people’s lives. Last week, he monitored the progress of the hydropower development, which includes phase one of the dam, access roads and other complementary buildings.
“In detail, the progress of stage one dam construction has reached 45 per cent, the access road has reached 35 per cent, and the construction of other complementary buildings has reached 25 per cent,” Ala was quoted as saying by Antara news agency in mid-December.
He also provided information that hydropower investors had carried out the blasting stage at the dam construction site, with several permits already obtained from the government.
Furthermore, around 600 local workers have been involved in the project, and this number is expected to increase to 7,000 as the construction of the five Kayan River hydropower dams continues.
In his statement, Ala emphasized that the hydropower development has high hopes of being completed on target by 2027. The Kayan River Hydropower Plant is planned to be the main support for the electrical energy needs of the Tanah Kuning Indonesian Green Industry Zone (KIHI) in Bulungan Regency and the National Capital City (IKN) of the Archipelago in East Kalimantan Province.
Previously, the Indonesian government was focusing on the development of Hydropower Plants (PLTA) as part of efforts to mitigate the impacts of climate change. The hydropower project on the Kayan River, North Kalimantan, with a total capacity of 9,000 MW is a strategic step to reduce carbon emissions.
Nurul Ikhwan, Deputy for Investment Planning at the Ministry of Investment, revealed Indonesia’s opportunity to build a hydropower plant with a capacity of up to 9,000 MW on the Kayan River. In addition, the government is also planning to build a hydropower plant on the Mamberamo River, Sarmi Regency, Papua Province, with a potential energy of up to 24,000 MW to support industrialization in Papua.
Global attention to clean energy is increasing, and the use of clean energy sources is considered key for future investment.
Seizing river potential
As is known in North Kalimantan Province (Kaltara), five dams are being developed for the largest hydropower plant in Southeast Asia initiated by PT Kayan Hydro Energy (KHE).
Rivers in Kaltara can be dammed and utilized as power plants. One of them is the Kayan River. The Kayan Hydropower Project is divided into 5 dams in an integrated cascade, with a total target of 9,000 MW of electrical energy production making it the largest in Southeast Asia.
For the first phase (Kayan I) with a capacity of 900 MW, it was informed that the contract value reached around USD 2.2 billion or approximately IDR 33 trillion (at an exchange rate of IDR 15,000 per USD). Meanwhile, for a capacity of up to 9,000 MW as planned, the investment value could reach more than Rp 500 trillion.
