Indonesia hydropower project seeks new partners after Sumitomo impasse

TANJUNG SELOR, Indonesia -- Indonesian company Kayan Hydro Energy is exploring new potential partnerships after its agreement to jointly develop a large hydroelectric station on Borneo island with Japanese trading house Sumitomo Corp. reached a stalemate.

The cooperation between KHE and Sumitomo for the development of the Kayan Cascade project in North Kalimantan province, in the Indonesian parts of Borneo, was announced in October 2022. The project includes plans to construct five dams on the banks of the Kayan river to produce a total of 9 gigawatts of electricity, which would make it the largest hydropower station in Southeast Asia if completed. Sumitomo has invested 270.9 billion rupiah ($16.7 million) in KHE, according to a legal document.