Bukaka builds hydropower plant in Poso to boost power supply

Ruslan Sangadji, The Jakarta Post/Palu, Central Sulawesi

The Bukaka Group has built a US$230 million hydropower plant in Sulewana village, North Pamona district in the troubled Poso regency, Central Sulawesi, in an effort to overcome an electricity shortage in the province.

The hydropower plant, which is scheduled to start operations in April 2007, will have a capacity of 180,000 megawatts, enough to fulfill electricity needs in Central Sulawesi as well as a part of South Sulawesi, Gorontalo and parts of North Sulawesi.

"We may even be able to meet electricity demand for the whole island of Sulawesi," said PT Bukaka Hydropower project director Heru Husaini on Thursday.

The company, owned by the family of Vice President Jusuf Kalla, claimed that once the power plant was operational, it would be the second biggest in the country after the Asahan hydropower plant in North Sumatra.

Acting Poso Regent Andi Azikin Suyuti said Bukaka's investment in the regency was expected to wipe out negative sentiment from investors that Central Sulawesi -- and Poso in particular -- was not attractive for investment.

"Bukaka can invest here (in Poso) and nothing has happened thus far. The government and security apparatus here have pledged to safeguard investments here, so investors have nothing to worry about," he said.

In the 1980s, a Canadian company had proposed to build a hydropower plant in Lore Lindo, but the plan was aborted due to protests from locals who feared that the plant would damage the nearby Lore Lindo National Park and that they would be evicted from their homes.

The cancellation of the project resulted in Central Sulawesi suffering a chronic power shortage for many years. The state electricity company PT PLN and local administrations have had to overcome the problem by buying and renting generators to provide power.

"Therefore, we hope the Sulewana hydropower plant will answer doubts from local and global investors on infrastructure availability in the province and they will put their money here," said Central Sulawesi's Indonesian Chamber of Commerce and Industry deputy chairman Arus Abdul Karim.