Sewatama teams up with Japanese firm in min hydro projects

PT Sumberdaya Sewatama, a subsidiary of integrated energy firm ABM Investama, has teamed up with Japanese firm ID Hydro Power Inc. to develop mini hydropower plants in Indonesia.

Sewatama said in a statement that it, through its subsidiary PT Nagata Bisma Sakti (NBS), had set up a joint venture with PT Jaya Dinamika Geohidro Energy (JDGE), a subsidiary of ID Hydro to develop at least eight mini hydropower plants with a combined capacity of 50 MW. The joint venture is called PT Nagata Dinamika.

JDGE has a 49 percent stake in the joint venture, while NBS has the remaining 51 percent.

?Sewatama through PT Nagata Bisma Sakti is committed to maintaining its ownership at 51 percent in Nagata Dinamika,? the firm said.

IDI Hydro will thus inject funds through JDGE into the joint venture, the firm said.

To express its strong commitment to the joint venture, ID Hydro together with NBS, JDGE and Seewatama signed on April 14 two agreements, namely Share Subscription Agreement and Related Parties Agreement regarding cooperation, investment and the option of share buyback.

Of the eight mini hydropower plant projects planned to be developed by the joint venture, two will be built in South Sulawesi this year with a combined capacity of 15 MW.

Editing by Johannes Simbolon