The Coordinating Ministry for Maritime Affairs and Investment and Papuan provincial administration have striven to boost investment in the hydropower sector, Head of the Energy and Mineral Resources-Papua Office Frets James Boray stated here, Tuesday.
If investment potential in the district's hydropower plant project can be realized, its value is estimated to reach some Rp50 trillion, he remarked, adding that the hydroelectric power plant was expected to produce 20 GW of electricity.
The hydropower plant project would not merely produce electricity but its presence would also positively impact Papua's economic development, boost the growth of industries, and increase the province's locally generated incomes (PAD), he explained.
"If the investment is realized, Papua's locally generated incomes will not only rely on Freeport," Boray pointed out.
At the meeting, representatives of the Coordinating Ministry for Maritime Affairs and Investment, FMG, Papua provincial government, and Mamberamo Raya district government had discussed matters to coordinate the ground feasibility study, he revealed.
In principle, the Papuan provincial government will assist in fulfilling requirements since the Papua governor and head of Mamberamo Raya had issued a recommendation for the ground feasibility study, he confirmed.
On Sept 4, 2020, FMG published on its official website that its wholly owned subsidiary, Fortescue Future Industries Pty Ltd, had entered into a Deed of Agreement with the Indonesian government.
The Indonesian government was represented by the coordinating minister for maritime affairs and investment, while FMG was represented by its chairman, Dr. Andrew Forrest AO.
"The Deed of Agreement gives first priority to the Fortescue Future Industries to conduct development studies into the feasibility of projects utilizing Indonesia's hydropower and geothermal resources to support green industrial operations, principally for exports to global markets," FMG stated.
Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan was quoted as saying that Indonesia and the Fortescue Future Industries had entered into a preliminary binding agreement to evaluate the development of Indonesia's substantial renewable power to drive green industries.
"For too many decades, proposals have been thrust upon Indonesia that rely on the Indonesian people assuming the full financial risk through the purchase of electricity at prices that underwrote these developments," Minister Pandjaitan was further quoted as saying.
"The establishment of totally new and future large-scale industries will drive growth in Indonesia's economy," Minister Pandjaitan and Fortescue's Chairman, Dr. Andrew Forrest AO, noted in a joint statement.
FMG expects new green industries in Indonesia to substantially diversify, broaden, and deepen Indonesia's already skilled workforce, Forrest affirmed.
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