Partnership with China, located in Kalimantan and still need investment
JAKARTA--The Indonesian government planned development project hydroelectric power plant (HEPP) with a capacity of 6,000 MW in Kayan, North Kalimantan, Indonesia with estimated investment of US$ 17 billion or equivalent Rp200 trillion.
"The project is planned to operate in 2018," said Director General of Electricity, Ministry of Energy and Mineral Resources (EMR) Jarman before meeting with House Commission VII here on Tuesday (21/1/2014).
This project utilizes the potential of the Kayan's river flow and need an investment of US$17 billion, with a total construction period is estimated to take approximately 30 years.
The project planned up to five stages, namely:
"For a 600 MW hydropower plant has been ground breaking on Saturday (18/01/2014) conducted the Deputy Minister of Energy and Mineral Resources Susilo Siswoutomo," he said.
The project will be run by few of investors, including from China.
Furthermore, the industrial area that includes large factories such as mineral processing plants and cement plants will be built in the surrounding area.
"So, there's hydropower supply to smelters, cement plants to anyone," he said.
Jarman added that the government encourages investors to build power plants fueled by renewable energy such as water.
"We expect other investors want to build more renewable energy generation," he said.
Investor
JAKARTA--The Indonesian government planned development project hydroelectric power plant (HEPP) with a capacity of 6,000 MW in Kayan, North Kalimantan, Indonesia with estimated investment of US$ 17 billion or equivalent Rp200 trillion.
"The project is planned to operate in 2018," said Director General of Electricity, Ministry of Energy and Mineral Resources (EMR) Jarman before meeting with House Commission VII here on Tuesday (21/1/2014).
This project utilizes the potential of the Kayan's river flow and need an investment of US$17 billion, with a total construction period is estimated to take approximately 30 years.
The project planned up to five stages, namely:
- First stage's capacity of 600 MW,
- Second stage's capacity of 800 MW,
- Third stage's capacity of 1,200 MW,
- Four stage's capacity of 1,200 MW, and
- Five stage's capacity of 2,200 MW.
"For a 600 MW hydropower plant has been ground breaking on Saturday (18/01/2014) conducted the Deputy Minister of Energy and Mineral Resources Susilo Siswoutomo," he said.
The project will be run by few of investors, including from China.
Furthermore, the industrial area that includes large factories such as mineral processing plants and cement plants will be built in the surrounding area.
"So, there's hydropower supply to smelters, cement plants to anyone," he said.
Jarman added that the government encourages investors to build power plants fueled by renewable energy such as water.
"We expect other investors want to build more renewable energy generation," he said.
Investor
The project of HEPP Kayan 6,000MW, China Power Investment (CPI) will participate as an investor.This was stated by the Minister of Energy and Mineral Resources (ESDM), Jero Wacik after met with Vice President of CPI, Xia Zhong at his office in Jakarta, Monday (05/27/2013).
"They've done surveys, and hopefully next year (2014) was able to lay the foundation stone," Jero said.
CPI is a State Owned Enterprise in China. CPI is committed to allocating US $ 17 billion to build the power plant.
Hydropower development will be conducted in five phases with a period of seven years.Perusahaan Listrik Negara/PLN (Persero) will purchase electricity from the plant CPI. But there is no discussion about the purchase price agreement of electricity.
During the meeting, Jero revealed it filed a number of requirements on the quality components of hydropower. This is done related to the perception of the quality of the power plant of origin china inadequate.He also called attention to the CPI communities around the project with its Corporate Social Responsibility (CSR).
"I'm prioritizing local labor and subcontractors involved in the country," he explained.
Not only limited to hydropower, the CPI is also keen to work on the mill and refining mineral ores (Smelter) in the country. Jero explain CPI target for bauxite and aluminum smelters. However, investment in this sector is still in the stage of calculation.
"The important thing electricity is already there. Later the other includes a smelter would be easier," he said.
CPI is one of the five largest state-owned enterprises in China that integrates the power industry, coal, aluminum, railway and port.
CPI has assets in power generation, thermal power, nuclear power and new energy. 80,074 MW of installed capacity, production capacity of 74.1 million tons of coal, and aluminum production capacity of 2.77 million tons.
CPI in cooperation with the Myanmar authorities to build Myitsone Dam, a large dam which was completed in 2017 and is estimated to generate 3600-6000 MW of Yunnan province.
Licensing Process
Since the inauguration marked the ground breaking Kayan River hydroelectric project continues the licensing process completeness. So far hydropower project with a capacity of 6,000 MW, still have to complete some of the permissions that must be completed some permissions.
Head of Economic Bureau Provincial Government of North Kalimantan, Risdianto said the number of permits that need to be met and the stage time is not short. Thus, when investors do not suit meant permits thes will impact on the project.
"They will not be able to do the next steps if you have not complied with the procedures or complement existing licensing. The bottom line is completed permit, just to build, "he said.
Currently Pememerintah continue to support the accelerated development of hydropower, by forming a technical team, involving not only agencies in North Kalimanan Province, but also District of Bulungan.
It is expected that with the establishment of the technical team is able to facilitate the acceleration of completeness permits as a condition that must be met by the investor.
"The team here then that will act and speak in a comprehensive manner related to the accelerated development of hydropower. The point we would like to begin construction as soon as possible, "he continued.
Efforts are also consistent commitment of Governor add-official North Kalimantan Irianto Lambrie which committed to cooperate with the investors and will continue to monitor and facilitate what the needs of investors.
"As needed, we continue to support until the project is realized. Since the beginning we did speed up the licensing process, correcting and correcting if there is a mistake, and we will continue to spur investors, "said Irianto. (*)
Head of Economic Bureau Provincial Government of North Kalimantan, Risdianto said the number of permits that need to be met and the stage time is not short. Thus, when investors do not suit meant permits thes will impact on the project.
"They will not be able to do the next steps if you have not complied with the procedures or complement existing licensing. The bottom line is completed permit, just to build, "he said.
Currently Pememerintah continue to support the accelerated development of hydropower, by forming a technical team, involving not only agencies in North Kalimanan Province, but also District of Bulungan.
It is expected that with the establishment of the technical team is able to facilitate the acceleration of completeness permits as a condition that must be met by the investor.
"The team here then that will act and speak in a comprehensive manner related to the accelerated development of hydropower. The point we would like to begin construction as soon as possible, "he continued.
Efforts are also consistent commitment of Governor add-official North Kalimantan Irianto Lambrie which committed to cooperate with the investors and will continue to monitor and facilitate what the needs of investors.
"As needed, we continue to support until the project is realized. Since the beginning we did speed up the licensing process, correcting and correcting if there is a mistake, and we will continue to spur investors, "said Irianto. (*)
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