Friday, 20 May 2022 | 18:28 WIB

Inalum Set to Build 1,700 MW Hydropower Plant

PT Indonesia Asahan Aluminium (Persero) or Inalum.

JAKARTA, NNC - PT Indonesia Asahan Aluminum (Persero) or Inalum plans to build a 1,700 MW hydroelectric power plant in Kayan, North Kalimantan, to electrify the aluminum smelter which will also be established.

President Director of Inalum Budi Gunadi Sadikin at Coordinating Ministry of Maritime Affairs Building, Jakarta, said the holding company of state mining enterprises is given a quota of 1,700 MW from the Kayan hydropower project in North Kalimantan.

"I was asked to accelerate the construction of a hydropower plant in North Kalimantan. We were given 1,700 MW to build a hydropower plant," he said as quoted by Antara.

Budi explained that the electricity from the hydropower plant will be distributed to aluminum smelter which will be built by the company in North Kalimantan.

Smelter with a capacity of 500 thousand to one million tons per year will be built in a new industrial area in the province, i.e., Industrial Area and International Port of Tanah Kuning and Mangkupadi.

Budi said the average development of hydropower plants took about five years, so the government requested that its construction could begin immediately. There is also an investment needed to build a hydroelectric power plant around USD7 billion.

"As for development, it will take five years. But the start is asked to be sooner, hopefully it can start next year," he said.

Separately, Coordinating Minister for Marine Affairs Luhut Binsar Pandjaitan welcomed the investment plan.

"It [Inalum] is looking for a partner. Approximately the investment will be several billion dollars but lead by Inalum. So do not say always Chinese, always China," he said.

Deputy of Infrastructure Coordination at Coordinating Ministry of Maritime Affairs Ridwan Djamaluddin explained Inalum’s consideration to build their own hydropower is for efficiency.

However, while building on its own, Inalum will seek an unlimited source of funding on one side only.

"It will look for partners for funding. The investors or funding could be from China," he said.

Ridwan added that despite requiring only 1,000 MW of electricity, the company will build a 1,700 MW hydroelectric power plant to maintain the fluctuations in the supply of needed electrical energy.