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Kayan Hydro expected to start construction of hydro power plant in Bulungan in March

JAKARTA ( – PT Kayan Hydro Energy is expected to start the construction of hydro power plant (PLTA) in Kayan River, Peso sub-district, Bulungan Regency in North Kalimantan (Kaltara) province.

Governor of Kaltara Irianto Lambrie told local media on Wednesday that the construction of the hdyro power plant with planned capacity of 900 MW will take about 4-5 years. “According to the company, the construction will be completed at the most four years,” Irianto said.

Meanwhile, the construction of major dam could take about 20 years. The company, he said, wants the construction of the dam to be done simultaneously.

The electricity from the hydro power plant will be supplied to North Kalimantan region, which often suffered power shortage, including the Industrial Zone and International Port (KIPI) in Tanah Kuning village, Tanjung Palas Timur, Bulungan.

He said prior to the development of the first dam, Kayan Hydro Energy is also plan to build a coal-fired power plant in Berau Regency, East Kalimantan.

“If PLTA Peso is completed, Kaltara (North Kalimantan) could also supply electricity to Berau and other parts of East Kalimantan,” he said.

The company is now waiting for recommendation from local government on the fate of the local communities that may be affected by the project. But there has been an unwritten agreement that the local community has agreed to be relocated under the expense of the investor.

He said the local community should not be worried about the inflow of workers from the China as Kayan Hydro’s investor comes from China. He wants expert staff to come from China, but middle to lower level works should be Indonesians.

PT Kayan Hydro Energy, on Nov. 9, 2014, signed a memorandum of understanding (MOU) with Shanghai Electric Power Limited to build the hydro power plant with estimated investment of US$17.8 billion.

The MOU was one of 12 memorandum of understandings signed by Indonesian and China’s companies in Beijing during a meeting between Indonesian business leaders and their China counterparts. The memorandum was witnessed by President Joko Widodo, who visited China to attend the Asia Pacific Economic Cooperation (APEC) Summit.

The Kayan hydro power was initially designed to have a capacity of 7000 megawatt (MW). The hydro power plant is developed to support the government’s plan to speed up development in the northern Kalimantan region.

Shanghai Electric Power is one of the major listed companies of China Power Investment Corporation, and a major electric energy company in Shanghai. (*)

Edited by Roffie Kurniawan (email:


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