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 today (March 1).
Earlier, Indonesia President Joko Widodo spoke and later performed the earth-breaking of the HEP dam described 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 ceremony that would develop the USD2.6 billion 1,375 MW HEP.
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).
Joko Widodo 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.
The HEP will supply power to local industries in North Kalimantan and is expected to be fully operational by 2030.
