Abang Johari (third right) at the earth-breaking ceremony with Joko (third left) and others. – Photo courtesy of Sarawak Premier’s Office

KUCHING (March 1): Sarawak’s participation in the Mentarang Hydro-electric Power (HEP) dam in North Kalimantan through Sarawak Energy (SEB) is an important step forward for  the state’s renewable energy sector, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg today.

“SEB’s investment in the project was a strategic capital outlay to enhance Sarawak’s position as a regional economic powerhouse,” he told reporters in Malinau in North Kalimantan at the earth-breaking ceremony at site of the project today.

Earlier, Indonesia’s 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.

Abang Johari and his entourage arrived in Malinau via Tarakan yesterday upon the invitation of the consortium of investors to witness the earth-breaking that would develop the 1,375 MW HEP with the cost of USD2.6 billion.

SEB has 25 per cent equity in the holding company that has two other shareholders namely PT Kayan Patria Pratama (25 per cent) and PT Adaro Energy Indonesia Tbk (50 per cent).

Joko 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 consisting 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.