KUCHING: Sarawak's participation in north Kalimantan's Mentarang hydroelectric plant (HEP) through the Sarawak Energy Bhd (SEB) is an important step forward for the state's renewable energy sector, says Tan Sri Abang Johari Tun Openg.
The Premier said SEB's investment in the project was a strategic capital outlay to enhance Sarawak's position as a regional economic powerhouse.
He was speaking to reporters in Malinau in north Kalimantan after witnessing the earth-breaking ceremony for the USD2.6bil (RM11.6bil) project.
SEB has 25% equity in the project's holding company, whose two other shareholders are PT Kayan Patria Pratama (25%) and PT Adaro Energy Indonesia Tbk (50%).
Indonesia's president Joko Widodo, who performed the earth-breaking, said the project reflected the strong spirit of cooperation between Indonesians and Malaysians as neighbours and "people of the same stock".
He expressed gratitude to the local communities, consisting mainly of the Punan and Lun Dayeh tribes, for supporting the project, which is expected to upgrade the status of the local economy.
The 1,375MW HEP will supply power to local industries in north Kalimantan and is scheduled to be fully operational by 2030.
