"Indonesia’s Kayan hydropower project forges ahead despite setbacks, director says" 14 June 2024

A hydropower project in Bulungan regency, North Kalimantan is forging ahead despite recent setbacks, including the withdrawal of key international partners PowerChina and Sumitomo, according to the local company behind it.

The Kayan Cascade project, a US$17.8 billion venture spearheaded by PT Kayan Hydro Energy (KHE), is a planned series of five dams along the Kayan River touted as Southeast Asia’s most extensive hydropower scheme.

The project's inception in 2012, initially in collaboration with Chinese state-owned PowerChina, marked the beginning of a journey fraught with challenges. Environmentalists’ concerns, local opposition and the recent departure of Sumitomo, a crucial Japanese backer, have cast shadows over its prospects...Sumitomo and the Chinese embassy in Jakarta did not respond to emails from BenarNews seeking information about why they withdrew from the project.

In spite of the setbacks, KHE remains confident that it will be able to complete the project independently if necessary, Sapta said. The company is also actively seeking new partners and is in talks with other prospective investors from Japan and China, he said...

In the North Kalimantan village of Long Peso...village head Pulinop Jaui said the construction has brought noise, dust and pollution to the once-peaceful community. He is particularly concerned about the dust from blasting activities, which he says has contaminated the village’s water source...For years, residents have been requesting the relocation of their clean water source, but KHE has only conducted surveys and not implemented any solutions, he said...

local environmentalist Wastaman said relocation plans for affected people in two villages, Long Lejuh and Long Pelban, remain unclear...“There is no certainty of living a decent life when their source of livelihood is lost,” Wastaman, director of Sustainable Forest Circle Association (PLHL), told BenarNews...