Indonesia, Japan to partner in Southeast Asia’s largest hydropower plant - Vietnam+ (VietnamPlus)
Published January 18, 2026
Indonesia and Japan Collaborate on Southeast Asia's Largest Hydropower Project
Indonesia and Japan have announced a significant partnership to develop what is set to become the largest hydropower plant in Southeast Asia. This ambitious project aims to bolster renewable energy production in the region while addressing the growing demand for sustainable energy sources. The collaboration highlights both countries' commitment to enhancing energy security and promoting environmentally friendly technologies.
The hydropower plant, located in Indonesia, is expected to have a total capacity of 1,040 megawatts (MW). It will be constructed on the Batang Toru River in North Sumatra, a region that has been identified as having substantial hydropower potential. This project is anticipated to play a crucial role in Indonesia's efforts to diversify its energy mix and reduce reliance on fossil fuels.
As part of the agreement, Japan's Ministry of the Environment has committed to providing technical assistance throughout the project's development. This includes sharing expertise in hydropower generation, environmental management, and sustainable practices. The collaboration is expected to create a model for future renewable energy projects in the region, emphasizing the importance of environmental sustainability in energy production.
Indonesia's state-owned enterprise, PT PLN (Persero), will lead the project, with Japan's Sumitomo Corporation serving as a key partner. Both companies will work together to ensure that the hydropower facility is designed and constructed to the highest international standards. The project is also expected to create numerous job opportunities for local communities, contributing to economic growth in the region.
In addition to its capacity, the hydropower plant is expected to significantly reduce carbon emissions. By harnessing the power of the Batang Toru River, the facility will provide a clean and renewable source of energy to support Indonesia's growing electricity needs. This aligns with Indonesia's national energy policy, which aims to achieve a renewable energy share of 23% in the overall energy mix by 2025.
The partnership between Indonesia and Japan is not only focused on energy production but also on environmental conservation. The Batang Toru ecosystem is home to a diverse range of flora and fauna, including the critically endangered Tapanuli orangutan. As part of the project, measures will be implemented to mitigate any potential environmental impacts, ensuring that the hydropower plant operates in harmony with the surrounding ecosystem.
Furthermore, the project is expected to enhance energy access for millions of people in Indonesia. With a growing population and increasing energy demand, the need for reliable and sustainable energy sources has never been more pressing. The hydropower plant will help to address this challenge by providing a stable and renewable energy supply, reducing reliance on coal and other fossil fuels.
The collaboration between Indonesia and Japan is a significant step towards achieving sustainable development goals in Southeast Asia. By investing in renewable energy infrastructure, both countries are demonstrating their commitment to combating climate change and promoting a greener future. This partnership sets a precedent for future collaborations in the renewable energy sector, encouraging other nations in the region to explore similar initiatives.
As the hydropower plant project progresses, stakeholders will continue to engage with local communities, ensuring that their voices are heard and that their needs are addressed. Community involvement is crucial for the success of such large-scale projects, and efforts will be made to provide information and resources to those affected by the development.
In conclusion, the partnership between Indonesia and Japan to develop Southeast Asia's largest hydropower plant represents a significant milestone in the region's renewable energy landscape. With a focus on sustainability, environmental protection, and community engagement, this project has the potential to transform Indonesia's energy sector and serve as a model for future renewable energy initiatives across Southeast Asia.
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