Indonesia breaks ground on $2.6 billion hydropower project

The Indonesian government has officially broken ground on a 1.375GW hydropower plant called Mentarang Induk in the country's North Kalimantan province. Mentarang Induk is being developed by PT Kayan Hydropower Nusantara, a joint venture between Indonesia's PT Kayan Patria Pratama Group and Malaysia's Sarawak Energy.

Indonesian President Joko Widodo said that because energy is green, the products produced in the industrial park will also be green products, low-carbon emission products, and competitive but competitive prices.

The integrated area from Mentarang to Bulungan area will be connected by 300km transmission line. This is not an easy task, requiring a huge budget of 2.6 billion US dollars, if converted into Indonesian rupiah, it will reach about 40 trillion rupiah, which is a very large amount of money.

In the KIPI region, we will manufacture the first EV batteries, electric vehicle batteries, and the electric vehicles themselves. The second is aluminum, which will also build an aluminum industry in the region. The third one, the petrochemical industry, will also start soon. Indonesia is a major producer and user of thermal coal as the main source of power and is one of the world's largest emitters of greenhouse gases.

The country aims to increase the share of renewable energy in its energy mix to 23% by 2025 and has pledged to achieve net-zero emissions by 2060. Although less emission-intensive than coal, environmentalists argue that dams can also cause problems with water flow, sediment flow and disruption of ecosystems. In addition, President Widodo said the project will support Indonesia's transition to a green economy.