Japanese trading house Sumitomo Corp. will invest over $17 billion in an Indonesian mega hydropower plant project on Borneo Island, in a bid to help Indonesia achieve its goal of net zero carbon emissions by 2060, according to its CEO.
Sumitomo CEO Masayuki Hyodo made the remarks late Sunday following the signing of an agreement between his firm and Indonesia's state-owned electricity company PT Perusahaan Listrik Negara on the sidelines of the summit of the Group of 20 major economies on the resort island of Bali.
The $17.8-billion Kayan Cascade project aims to make the biggest hydropower plant in Southeast Asia, said Moeldoko, presidential chief of staff.
Sumitomo decided to join the project to create a power plant that does not emit carbon dioxide to "contribute to the net zero emission policy of the Indonesian government," according to Hyodo.
Last month, Sumitomo said it will team up with its Indonesian partner PT Kayan Hydro Energy to develop the 9,000-megawatt hydropower project.
The project is planned to be developed on Kayan River in North Kalimantan Province on the Indonesian part of Borneo Island.
Executives of PT Kayan Hydro Energy said the construction of the first dam will start early next year and is expected to be completed by 2027. Electricity generated by the project will supply a green zone to be developed in the province and other areas on Borneo.
