The Governor of North Kalimantan (Kaltara), Dr. H. Irianto Lambrie said that there was a direct direction given by Indonesian President Joko Widodo for Kaltara Province during the 2019 Bank Indonesia (PTBI) Annual Meeting in Jakarta last Thursday night.
The directive, is that the plan for the construction of the Kayan Hydroelectric Power Plant to begin immediately in 2020. And, the President will continue to monitor its progress.
"According to the President, the Kayan Hydropower Plant is one of the new sources of Indonesia's economic growth going forward. Through the Kayan Hydroelectric Power Plant, it will also increase the competitiveness of Indonesia, or Indonesia which is competitive," Irianto said, quoting the President's direction.
Why is that? According to Irianto, the President projects that there will be a reduction in the cost of production or electricity production costs. Where so far, when relying on coal production costs can reach USD 6 to 7 cents, while using hydro power is only around USD 2 cents.
"Mr. Jokowi hopes, with the use of hydro power, investors will come to Indonesia, especially Kaltara. Once again, this is an affirmation from the President," said the Governor.
From the Kayan Hydroelectric Power Plant, it is expected that the electrical energy that can be produced reaches 11 thousand megawatts (MW).
Not only the Kayan Hydroelectric Power Plant, in Kaltara PLTA will also be built in the Mentarang River, Malinau Regency. By President Jokowi, the PLTA with a capacity of 1,375 Megawatts (MW) was also driven by its acceleration. "Mr. President encourages the acceleration of the development of two hydro power in Kaltara," he added.
To note, the Mentarang hydropower is planned to be built in collaboration with two companies. Namely Kayan Hidro Power Nusantara or PT Kayan Investama Internasional (KII) Group from Indonesia, with Sarawak Energy Berhad (SEB) from Malaysia.
Irianto also strived to fulfill the President's directives regarding the search for new sources of economic growth, in addition to hydro power. This is related to the economic transformation being pursued by the government.
"So far, Indonesia has exported many commodities in the form of raw materials, such as nickel, lead, bauxite, to coal. In fact, if the commodity is processed to produce derivative products in the form of finished or semi-finished goods, it will have greater added value," explained the Governor.
Repeating the President's statement, Irianto analogized coal which, if processed into DME or polypropylene, could replace Indonesian imports of LPG, or replace imports of raw materials for clothing.
"Likewise with other products such as palm oil that can be processed into biodiesel, and nickel, manganese, and cobalt whose derivative products can be used as materials for lithium batteries," said Irianto.
Furthermore, the President said, the government was setting up a major strategy for the country's business so that Indonesia could become a major player in producing world lithium batteries.
"In the future the name of the electric car will definitely be massively produced because people are no longer happy to use fossil energy," the Governor said.
Another potential is through the development of new tourism destinations. The government is now focusing on working on 10 new Bali, where the first 5 destinations namely Labuan Bajo, Mandalika, Borobudur, Lake Toba, and Manado are targeted for completion in 2020.
"At the tourist destination, the airport terminal was raised, the runways were all extended, the roads to the tourist sites were all worked out," explained Irianto.
In addition, to be able to survive in an uncertain global situation is to remain optimistic. Related to this, the President invited business people and investors not to hesitate if they wanted to invest.
Because according to the President, the government is now building a better investment climate. One way is by simplifying regulations and bureaucracy through making omnibus law and echelon pruning.
"Entrepreneurs, don't let anyone say wait and see. If you want to invest, invest because we will improve the investment climate," Irianto concluded.