The Japanese government has lent support for the sustainability of the Kayan hydroelectric power plant (PLTA) as part of its commitment to aid Indonesia in achieving the net zero emission (NZE) target by 2060.

The support was realized through the signing of Letter of Intent (LoI) between the Ministry of Economy, Trade and Industry (Meti) of Japan and the Indonesian Coordinating Ministry for the Economy on “Implementing Kayan Hydropower Project”.

The Kayan hydropower project is one of several projects within the framework of the Asia Zero Emission Community (AZEC), which is a platform for cooperation towards carbon neutrality in the Asian region. Previously, Kayan had been designated as a potential category II project and was ready to be commercialized. However, it is currently still in the feasibility study stage.

Masanori Tsuruda, Deputy Commissioner for International Affairs at Meti, said the signing the Kayan LoI needs followed-up from Indonesia and Japan to realize the construction of the Kayan hydropower plant.

"The challenge to build the Kayan hydropower plant is not easy, but we are confident that the good bilateral relations between Japan and Indonesia are a strong capital for the development of the Kayan hydropower project," Masanori said on Wednesday, March 5, 2025.

Edi Prio Pambudi, Deputy for Economic Cooperation and Investment at the Coordinating Ministry for the Economy, said that the Kayan project is one of a number of initiatives that are being and will be implemented by Indonesia to support the achievement of the net zero emission commitment by 2060.

"For Indonesia, the Kayan Hydroelectric Power Plant is not just an infrastructure project within the AZEC framework. This project is a strategic investment for Indonesia's energy security and decarbonization efforts," Edi said.

He cited that Japan plays an important role as a strategic partner in implementing energy transition policies and projects in Indonesia.

"The Indonesian government encourages Japan to strengthen cooperation in implementing practical, scalable and inclusive energy transition projects," he said.