China build hydropower plant 6,000 MW amount U.S. $ 17 billion in Indonesia

JAKARTA - China started the construction of Hydroelectric Power Plant (HEPP ) with a capacity of 6,000 MW with an investment of U.S. $ 17 billion in Indonesia. The cooperation Indonesia with China in order to improve the energy utilization of the water to increase the contribution of renewable energy in the national energy mix in accordance with the national energy policy. Ceremony of Ground Breaking for Kayan Cascade hydropower with a capacity of 6,080 MW undertaken by the Deputy Minister of Energy and Mineral Resources, Susilo Siswoutomo .

Susilo expect, Kayan Cascade hydropower energy can enhance the role of water in the national electricity production and increasing the share of renewable energy in the national energy mix .

Kayan Cascade hydropower development is located in the village of Long Peso, District Peso, Bulungan , Province of North Borneo will be done by five stages with a period of 12 years with a total investment of U.S. $ 17 billion .

China Power Investment Corporation (CIP) has expressed its commitment to invest in new and renewable energy sector in Indonesia through hydropower development Kayan.

Hydropower development is in line with the Master Plan for the Acceleration and Expansion of Economic Development (MP3EI) which uses a breakthrough approach that is based on the spirit of "not business as usual".

In the development of water energy, the private sector will be given a major and important role , especially in increasing investment and job creation, while the government will function as a regulator, facilitator and catalyst. In regulation aspect, the government will deregulate (debottlenecking) against regulations that impede the implementation of the investment .

Currently, Indonesia has a very big challenge to improve national energy security in order to support sustainable development. For this reason very interested MEMR encourage businesses to accelerate the development of new renewable energy, in this case the energy of water.

Indonesian hydropower potential is quite large, about 75.000 MW. but this time through the utilization of national electricity production reached 9% of the total potential.

To facilitate and catalyze investment in water energy, efforts are now underway is completed EMR ministerial regulations relating to the sale price of electricity from the energy of water.

Government's commitment to pursue a variety of incentives for investment in the energy sector water needs to be coupled with the commitment of investors to engage as much as possible the use of sub-contractors and labor in the country. Thereby obtaining a solution that is mutually beneficial.(*)

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