Indonesia, Japan to partner in Southeast Asia’s largest hydropower plant

Indonesia's Coordinating Ministry for Economic Affairs and the Japanese Ministry of Economy, Trade, and Industry (METI) have signed a letter of intent (LoI) on cooperation in developing the Kayan hydropower plant in North Kalimantan, the largest of its kind in Southeast Asia, with a total investment of $17.8 billion.

For Indonesia, the Kayan hydropower plant is not just an infrastructure project within the framework of the Asia Zero Emission Community but also a strategic investment for Indonesia’s energy security and decarbonisation efforts, Deputy Minister for the Coordination of International Economic Cooperation Edi Prio Pambudi said.

He emphasized that as a strategic partner, Japan will help Indonesia implement energy transition projects and achieve net-zero emissions by 2060. Therefore, the Indonesian government has urged Japan to strengthen cooperation in implementing practical, scalable, and inclusive energy transition projects in the country.

Meanwhile, Deputy Commissioner for International Affairs at the METI Masanori Tsuruda said that the LoI on the development of the Kayan hydropower plant needs to be immediately followed up by both governments.

Although the development of the plant is challenging, he is confident that the good bilateral relations between Japan and Indonesia are a strong foundation for the development of this project.

Once completed, the hydropower plant, with a capacity of 9,000 MW, will supply renewable energy to Indonesia's largest green industrial park in Tanah Kuning, North Kalimantan. It will also support Indonesia's target of bringing the share of renewable energy in the national energy mix to 23% by 2025 and 31% by 2050, as a part of its commitment to a sustainable energy future.