Sarawak Energy Signs Letter Of Intent With North Kalimantan To Develop Power Resources

Initial agreement sees Sarawak’s home-grown utility tapped to provide consultancy and technical expertise to Bornean neighbour

KUCHING, 27 APRIL 2016, WEDNESDAY: Sarawak Energy has reached a milestone in its journey to become regional provider of renewable energy with an agreement that lays the foundation for the company’s first venture into expanding its operations outside Malaysia.

The state-government owned utility signed a Letter of Intent (LoI) with Indonesia’s Northern Province of Kalimantan (KALTARA) here today, formalising an agreement to explore partnership opportunities in power generation projects and strategy formulation to improve the power supply infrastructure in KALTARA.

Through the LoI, Sarawak Energy will provide strategic advice and technical expertise to North Kalimantan. Both parties agree to look into the potential power projects in KALTARA to pave the way for increased commercial and industrial development.

The signing ceremony was witnessed by the Minister of Public Utilities of Sarawak, Datuk Amar Awang Tengah Ali Hasan. Signing on behalf of Sarawak Energy was its Group Chief Executive Officer, Datuk Torstein Dale Sjøtveit, while Dr. H. Irianto Lambrie, the Governor of North Kalimantan inked the agreement for the Government of North Kalimantan. Also present was Sarawak Energy Chairman Datuk Amar Abdul Hamed Sepawi.

Datuk Amar Awang Tengah Ali Hasan, Sarawak Minister for Public Utilities said:

  • This LoI marks the start of a partnership that we hope will advance opportunities for KALTARA and Sarawak Energy to work together for the development of the province’s energy-rich resources.
  • I believe that for Sarawak Energy, this is a big step in the realization of an ambition to become a regional powerhouse – who would have thought when the State embarked on the Sarawak Corridor of Renewable Energy or SCORE journey not even ten years ago, Sarawak Energy would be called upon to provide expertise beyond our borders so quickly.
  • Today’s event opens yet another chapter by building on the powerful connections we have made.
  • In my capacity as Minister of Public Utilities and as former Chairman of SESCO, it gives me a strong measure of pride that in the years since SCORE was launched, Sarawak Energy has risen to meet the challenge.
  • What I am even more pleased to see is that you have acquired the management and technical expertise necessary to meet this rapid growth, through a strong human resource development and capacity building programme.
  • This is now being recognised by neighbouring countries.
  • The LoI opens the door for the people of Sarawak Energy to apply your skills and knowledge by participating in potential projects in North Kalimantan.
  • It is my hope that this will be the launching pad for Sarawak Energy talent to apply your expertise as power developers across the world, much like China exports their knowledge and expertise.
  • I hope that this LoI will foster collaboration and cooperation, for the greatest benefit to both our communities on our shared Borneo Island.

Datuk Torstein Dale Sjøtveit, Sarawak Energy Group CEO said:

  • This LoI represents a big milestone in our transformation journey from a traditional utility into a regional powerhouse – it lays the groundwork for us to expand internationally.
  • Our tremendous development, business achievements and active participation at regional and international energy forums are now gaining international attention and have opened doors for business expansion in the region.
  • We now have the opportunity to demonstrate our capacity and capability in managing and developing power projects outside Sarawak. It also opens the door for professionals in Sarawak Energy to practice their skills and knowledge outside the country.
  • Dr. H. Irianto Lambrie, the Governor of Kalimantan Utara Said:
  • The province is impressed by the leadership of the Sarawak Government for planning and realising the SCORE development initiative, which promotes investments in industries through the production of bulk sustainable energy at globally competitive prices.
  • KALTARA views Sarawak’s SCORE as a successful model to emulate in harnessing its natural resources for economic development.
  • KALTARA is also impressed by the professional management of Sarawak Energy in developing the power sector of Sarawak to support the SCORE agenda, and regards the company as a reliable long term business entity that has the capability to assist in the development of the province’s power sector.
  • KALTARA is confident that the collaboration will allow the province to not only address its immediate power concerns, but will boost its generation capacity to pave way for increased commercial and industrial development.

 In January this year, Sarawak Energy began exporting power to West Kalimantan. The company has developed plans with Brunei and Sabah for more interconnection projects that will advance the concept of the ASEAN Grid.

KALTARA, the newest and 34th province of the Republic of Indonesia, was formed in October 2012. Blessed with an abundance of natural resources, in particular hydro, coal and natural gas, KALTARA recognises the need to develop its power sector to accelerate its economic potential. KALTARA covers an area of 72,275.12 square km, with a population of over 600,000. The province's territory was previously part of East Kalimantan.

Sarawak Energy Group Chief Executive Officer Datuk Torstein Dale Sjotveit and the Governor of North Kalimantan Dr. H. Irianto Lambrie in a group photo after the signing of the Letter of Intent as witnessed by Minister of Public Utilities of Sarawak, Datuk Amar Awang Tengah Ali Hasan (centre) and others. (Photo courtesy of Utusan Sarawak)