The Indonesian government has begun construction works for the Mentarang Induk hydropower plant. The Indonesian President officially launched the project, which will require a $2.6 billion investment. The power plant will be built by PT Kayan Hydropower Nusantara, a partnership between PT Adaro Energy Indonesia, PT Kayan Patria Pratama Group, and Sarawak Energy, and will have a capacity of more than 1.3 GW.

Reportedly, Mentarang Induk will be connected to a planned industrial park in North Kalimantan. The industrial park will be home to electric vehicles and battery plants, as well as aluminium and petrochemical facilities. Construction of the hydropower facility is expected to be completed over a period of seven years. Indonesia is a major producer of thermal coal, which serves as the country’s main source for generating power. The country plans to shift to cleaner energy generation sources and has set a target to reach net-zero emissions before 2060. 

Additionally, it plans to obtain 23 per cent of the country’s power from renewable sources by 2025, up from the 12 per cent share that they currently have in the nation’s energy mix. Separately, the Indian government has given the go-ahead for the construction of the $3.9 billion Dibang hydropower project in the state of Arunachal Pradesh.