Indonesian President Joko Widodo on March 1 launched the construction of a 2.6 billion USD hydropower plant that would be linked to a planned industrial park in North Kalimantan.

Illustrative image (Source: bisnis.tempo.co)

The plant, called Mentarang Induk, is being developed by PT Kayan Hydropower Nusantara, a joint venture between Indonesian companies PT Adaro Energy Indonesia and PT Kayan Patria Pratama Group, and Malaysia’s Sarawak Energy Bhd.

The 1.375 gigawatt plant will be linked to an industrial area the President said will house electric vehicle and battery plants, as well as aluminium and petrochemical facilities.

He said the hydropower project is expected to finish construction in seven years to power the planned park.

Indonesia is a major thermal coal producer and relies on coal as its main source of power but has pledged to move away from the dirty fuel and reach net-zero emissions before 2060.

The country, which is one of the world’s biggest emitters of greenhouse gases, aims to increase the proportion of renewables in its energy mix to 23% by 2025, up from around 12% currently.

Source: VNA