MALINAU (North Kalimantan): Sarawak’s participation in the Mentarang hydroelectric plant (HEP) in North Kalimantan through Sarawak Energy Berhad (SEB) is an important step forward for the state’s renewable energy sector, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
“SEB’s investment in the project is a strategic capital outlay to enhance Sarawak’s position as a regional economic powerhouse,” he told reporters here yesterday (March 1).
Earlier, Indonesia President Joko Widodo spoke and later performed the earth-breaking of the HEP dam, describing it as a strategic national project and the biggest in Indonesia.
The Premier and his entourage arrived here via Tarakan on Tuesday (Feb 28) upon the invitation of the consortium of investors to witness the earth-breaking that would develop the USD2.6 billion 1,375 MW HEP.
The HEP will supply power to local industries in North Kalimantan and expected to be fully operational by 2030.
SEB has 25 per cent equity in the holding company which has two other shareholders namely PT Kayan Patria Pratama (25 per cent) and PT Adaro Energy Indonesia Tbk (50 per cent).
Jokowi, in his speech, said the project was a reflection of the strong spirit of cooperation between the people of Indonesia and Malaysia as neighbours and who were “people of the same stock”.
He expressed gratitude to the local communities comprising mainly of the Punan and Lun Dayeh tribes who fully supported the project that was expected to upgrade the status of the local economy.
Last Friday (Feb 24), Deputy Prime Minister Datuk Seri Fadillah Yusof had pointed out that the good relations between Indonesia and Sarawak saw the state exporting electricity to West Kalimantan since several years ago.
He stated that this resulted in Sarawak being presented with the opportunity to construct a hydroelectric dam in Indonesia.
“Indonesia wants to have hydropower, four dams in Kalimantan and one package has been agreed to be given to Sarawak. SEB will be the implementor as they have experience in building four hydroelectric dams in Sarawak,” he said.
Fadillah added that he had focused on discussions about opportunities to tap the upstream and downstream industry especially for the palm oil sector during his recent visit to Indonesia, the largest producer of palm oil in the world.
“Kalimantan has the most plantations due to its large land mass, so the opportunities won’t be just downstream and upstream, and how we can strengthen bilateral ties in this context including logistics.
“This is something that we are discussing with Indonesia currently,” he said.
At the same time, he said Malaysia and Indonesia could jointly plan to develop a railway network at the border of Sarawak and Kalimantan to transport goods from Kalimantan to Bintulu and utilise its port facilities.
“Perhaps the federal government could assist the Sarawak government in negotiating with Indonesia to prepare a railway line to transport goods from Kalimantan to Bintulu Port.
“The sea route is quite far, so this will help Indonesia in exporting as Kalimantan has many resources, so if we can tap them, we can develop them together with Indonesia,” he added.
