PT Kayan Hydro Energy (KHE), a player in renewable energy projects in Indonesia, is striving to immediately realize the construction of the Kayan Cascade Hydroelectric Dam in Bulungan Regency, North Kalimantan, a key project in supporting Indonesia’s energy transition from fossil to green energy.
“This project is very important for Indonesia, especially in relation to energy transition from fossil to green energy. We are committed to realizing this project as soon as possible in accordance with the program that has been initiated by the Indonesian government,” Eko Hadipermana, representative of the holding company that oversees PT KHE, said after attending a Business Dinner in Jakarta on Monday, August 19, 2024.
Edi Prio Pambudi, Deputy for International Economic Cooperation at the Coordinating Ministry for the Economy, emphasized that licensing is not the main problem in this project, but rather the management of the Kayan River which is the source of energy for the hydroelectric power plant.
“Management of the Kayan River is very important because it concerns the livelihoods of many people. We do not want this river to be controlled by outside parties,” Edi said.
Steven Kho, Executive Committee Member of PT KHE, said that licensing for the Kayan Cascade hydroelectric power plant project is quite complex and multi-layered because there is no precedent for a project of this size in Indonesia or Southeast Asia.
“The licensing process is very long, with more than 60 permits required… And it takes years to complete,” he said.
Steven added that the biggest obstacle is ensuring that this project remains under Indonesian control.
“Although it is difficult, the government and PT KHE continue to be committed to ensuring that Indonesia remains the main controller in this project,” he said.
Meanwhile, Edi reiterated the importance of maintaining ownership of the Kayan River.
“We do not want to repeat the trauma of the past where control over important resources fell into the hands of outsiders. The government will continue to support and assist KHE in this project to ensure that Indonesia’s position remains strong and sovereign,” he concluded.
