KUCHING, Oct 8 — State-owned Sarawak Energy Berhad (SEB) is working with an Indonesian power producer on a proposal to build a hydro-electric power plant in one of the Indonesian provinces on the island of Borneo, Chief Minister Datuk Patinggi Abang Johari Openg said today.
He said the proposed HEP will be a joint venture between SEB and the Indonesian power producer.
“Power is important for the new capital of Indonesia to be relocated to East Kalimantan,” the chief minister when answering a question from an Indonesian businessman at the business engagement session with business community here.
He said West Kalimantan is getting electricity supply from SEB’s Bakun dam and soon from Baleh dam, which is under construction.
Indonesia has identified a site in East Kalimantan to relocate its new capital from Jakarta on the island Java.
Abang Johari said the siting of the new capital will lead to a large movement of people from Jakarta to East Kalimantan.
He said the Sarawak business community should take advantage of the sudden increase in population in East Kalimantan by providing goods and services, especially food items.
“There will be huge business opportunities available for the Sarawak companies with the relocation of the Indonesian capital,” he said, adding that the Sarawak government and Indonesia have established good bilateral and economic relations.
He believes that the Indonesian government may need certain support from Sarawak, but it has yet to be discussed.
“Definitely, there will be things we can supply, like services, when they relocate their capital to East Kalimantan later,” he added.
Sarawak Business Federation (SBF) president Datuk Abang Abdul Karim Openg said the Sarawak private sector is aware of the business opportunities available once the Indonesian government has moved its capital to East Kalimantan.
“In fact, we are closely collaborating with the business community in West Kalimantan and East Kalimantan.
“What we want is for the state government to come up with policies to facilitate our collaboration so that we can take advantage of the business opportunities that will be available in East Kalimantan,” he said.