KAB Energy Holdings Sdn Bhd, a subsidiary of Kejuruteraan Asastera Bhd (KAB), a Malaysian company, has received approval from its shareholders to acquire a mini hydro-power plant in Indonesia.
In a statement, the engineering and energy solutions provider said the proposal was passed at the extraordinary general meeting held on Thursday (27/4) for the acquisition of PT Inpola Mitra Elektrindo, which owns and operates a 11 Megawatt (MW) mini hydro-power plant in the District of Pakpak Bharat, North Sumatra.
The Malaysian Reserve reported that PT IME had developed, owned, and operated a power plant under a power purchase agreement (PPA) with PT Perusahaan Listrik Negara (PLN). The PPA has an initial concession period of 20 years from the commercial operation date, which started on Oct 12, 2021.
Upon completion of the proposed acquisition, the hydro-power plant is expected to provide KAB with a stable and recurring income stream as per the PPA with PLN.
KAB Group Managing Director Datuk Lai Keng Onn said the move is in line with their overall business strategy in expanding their suite of solutions for the SES segment to meet customers’ ever-growing needs.
“Moving forward, KAB is committed to pursuing larger and more ambitious sustainable energy projects to further drive the growth of the SES segment as global demand for such solutions continues to rise,” he said.
Malaysia’s investment in the hydropower plant in Indonesia
Data from the Ministry of Energy and Mineral Resources (ESDM) stated that hydro-power capacity had reached 4,621 MW, while micro-hydro power plant (PLTMH) and mini-hydro power plant (PLTM) had reached 411 MW in 2022. It shows that the potential of hydro energy in Indonesia has not been maximized.
However developing this renewable energy also requires a lot of money. Therefore, Indonesia invites investors to participate in investing in the renewable energy sector, including Malaysia.
Malaysian investors have begun to look at the potential for investment in the renewable energy sector in Indonesia. In March 2023, Kayan Hydropower Nusantara – a joint venture between Indonesia’s Kayan Patria Pratama (KPP) Group and Malaysia’s Sarawak Energy Berhad – is building a hydro-power plant, which is planned to operate in 2030.
The 1,375 MW power station will generate electricity from the Mentarang river in Malinau, North Kalimantan. The plant will connect to Kalimantan Industrial Park Indonesia (KIPI).
Previously, Reservoir Link Energy Bhd’s unit entered a term sheet to acquire a 90 percent stake in Indonesia’s PT Eco Power Engineering (EPE) for US$3 million in cash.
Reservoir Link management said the proposed acquisition is envisaged to provide an opportunity for the company to build a 9.6 MW mini hydro plant at Sungai Lawe Mamas, Aceh, Indonesia.
