Jakarta (ANTARA News) - PT Indonesia Asahan Aluminum (Inalum), which has an aluminum smelter in North Sumatra, said it plans to build a hydro-power plant (PLTA) in Kayan, North Kalimantan.

The power plant with a capacity of 1,700 megawatts is planned to supply power to an aluminum smelter to be built in that area, Chief Executive of the state-owned company Budi Gunadi Sadikin said here on Tuesday.

Inalum, which is the holding company for state-owned mining companies outside oil and gas, was given a share to build a 1,700 MW hydro power plant in Kayan in North Kalimantan.

"I was asked to speed up the construction of a PLTA in North Kalimantan. We are given a share to build a PLTA with a capacity of 1,700 MW," Budi said.

He said the power production from the PLTA would be channeled to an aluminum smelter to be built by Inalum in North Kalimantan.

The smelter with a capacity of 500,000 tons to 1 million tons a year, would be built in a new industrial estate in the province -- the Tanah Kuning International Port and Industrial Estate. Mangkupadi.

Budi said as construction of a PLTA would take 5 years on the average, the government wants that work should start immediately.

"The project would cost around US$7 billion. We hope to be able to start construction next year," he said.

Separately, Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan welcomed the plan to build the project.

"Inalum is looking for partner. But Inalum would be the lead investor," Luhut said.

A deputy for Infrastructure Coordination at the Coordinating Ministry Ridwan Djamaluddin said Inalum plans to build the power plant is for efficiency.

Although it would build the project itself, Inalum would look for not only one source of fund, Ridwan said.

"Inalum would look for partner in financing. The financier or investor could be from China," he said.

He said the new aluminum smelter would need only 1,000 MW, but Inalum plans to build a PLTA with a generating capacity of 1,700 MW to be prepared for any increase in requirement. (AS)

Reporter: antara
Editor: Andi Abdussalam
Copyright © ANTARA 2018