Mamberamo hydropower project opens 23GW investment window

Indonesia is seeking investors for the Mamberamo hydropower project, which could become one of Asia’s largest renewable-energy opportunities. Energy and Mineral Resources Minister Bahlil Lahadalia made the offer at Electricity Connect 2026 in Tangerang on 22 September. He also promoted the Kayan River project in Kalimantan, which carries potential capacity of about 12GW.

Papua project targets strategic capital

The Mamberamo hydropower project would give investors access to a major renewable-energy development in eastern Indonesia. However, the minister’s invitation marks an investment offer, not a final financial close.

Lahadalia said Indonesia now offers the right conditions for renewable-energy investment. His appeal focused on investor commitment as Jakarta seeks greater energy self-sufficiency.

The project fits Indonesia’s wider power strategy. Lahadalia said cooperation with China would support a target for at least 60% of the country’s power plants to use renewable energy within the next decade.

That target creates potential demand for large-scale generation. It also raises questions about transmission, project finance, construction risk and power purchase arrangements.

The Mamberamo River sits in Papua, where electricity access and infrastructure remain key development issues. A project of this scale would therefore require more than generation assets. Indonesia has already made progress on electrification across its outer islands, with remote electrification reaching 4,602 villages in recent years — signalling that the policy framework for remote power delivery is maturing.

Investors would need clarity on grid links, transport, environmental approvals and local development benefits. These factors will shape the project’s bankability.

What does the project mean for investors?

State electricity company PLN and China’s SDIC Power already have a cooperation framework for the Mamberamo development. The agreement was signed during an Indonesia-China business forum in Beijing on 10 November 2024.

Under the agreement, PLN and SDIC Power are conducting joint studies. Those studies cover business, technical, legal and risk issues.

The partnership gives the project an established institutional starting point. The latest investor invitation, however, suggests Jakarta wants broader interest and additional capital.

China’s role signals a possible route for technology, construction expertise and financing. Yet the project’s next stage will depend on study outcomes and Indonesia’s investment structure.

Meanwhile, the Kayan River offer widens the opportunity set. Its potential capacity of around 12GW gives investors another large hydro project to assess.

Together, the two projects represent about 35GW of potential capacity, based on the minister’s figures. That is a substantial pipeline for developers, equipment suppliers and lenders.

However, potential capacity does not equal installed capacity. Investors will focus on feasibility results, tariffs, construction schedules and offtake certainty.

The projects could also support energy-intensive industries if Indonesia develops suitable transmission and industrial demand. Such demand would strengthen utilisation prospects and improve the case for supporting infrastructure. Indonesia’s broader energy strategy, which already targets E50 biofuel blends and oil buffer stockpiles, reinforces Jakarta’s ambition to reshape its energy mix on multiple fronts — as the country’s energy strategy makes clear.

For policymakers, the immediate task is to convert resource potential into investable projects. Clear permits, credible studies and predictable contracts will matter as much as river capacity.

For investors, the Mamberamo hydropower project offers rare scale in a renewable market seeking energy security. The next signals will come from the PLN-SDIC studies, project design and the government’s investment terms.

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