The government is ready to build a hydroelectric power plant in Maung Banjar Negara, Central Java after received an investment injection of US$650 million from South Korea’s power generation industry, Korea Southern Power Co., Ltd. (KOSPO). The project is expected to drive the government’s interest in supplying electricity through green energy by 23%.

The project is under the auspices of PT Indonesia Power and PT Nindya Karya after the two companies signed a memorandum of understanding (MoU) on Friday. The construction of the project will take approximately four years with an investment of around Rp10 trillion (US$714.28 million). Nindya Karya is expected to build the dam in two years followed by the plant construction by Indonesia Power.

The power plant, which is planned to produce 230 megawatts of electricity, is aimed to meet the new and renewable energy mix by 23% until 2027. In addition, this hydropower plant also aims to reduce sedimentation in the Mrica Reservoir, dam of the Serayu River, with an installed capacity of 180 megawatts.