Jakarta, INTI - Chinese investor Sichuan Yoachuan Electric Power Development Co., Ltd., is exploring investment in the construction of a hydroelectric power plant (PLTA) in South Ogan Komering Ulu (OKU) Regency with a targeted capacity of 200–500 megawatts (MW).
The investment plan emerged during a meeting between South Sumatra Governor, Herman Deru, and Chinese investors in Palembang on Wednesday, June 24, 2026.
Herman Deru stated that South Sumatra has significant water resource potential for development into renewable energy-based power plants. He expressed that investment in the electricity sector is a strategic necessity given the increasing energy demand and industrial activity in the region.
"The development of clean energy such as hydroelectric power plants has good prospects because it is supported by adequate natural resource potential and a sustainable water supply," said Herman.
He considered the successful operation of the mini-hydro power plant in Pagar Alam City to be proof that renewable energy investment can be optimal in South Sumatra.
Three Key Priorities for the PLTA Development
During the meeting, Herman Deru also emphasized three key points that the local government will prioritize for potential investors.
First, accelerating the permitting process through coordination between the central and regional governments. Second, utilizing local labor combined with technology transfer from foreign experts. Third, a commitment to environmental aspects, particularly maintaining upstream areas and forest cover, which are the source of sustainable water flow.
"Environmental sustainability is a primary requirement for long-term economic and energy benefits," he said.
The hydropower project, to be developed by PT Midigio, will be located in Negeri Cahaya Village, Beringin District, South OKU. The project's groundbreaking is scheduled for soon, with a target completion time of approximately 15 months.
He stated that the addition of the new power plant will further strengthen South Sumatra's electricity system, which has been relatively stable.
"For example, during the recent power outages in several areas of Sumatra, the electricity supply in South Sumatra will be still well maintained," he added.
Further Investment Plans
Meanwhile, Chairman of Yoachuan Group, Sun Mei, stated that Indonesia, particularly South Sumatra, is a strategic region for developing new and renewable energy investments. The company has extensive experience developing power projects in China and sees significant opportunities to expand its investment in Indonesia.
"We hope to receive support from the South Sumatra Provincial Government so that this investment plan can proceed smoothly," said Sun Mei.
In addition to the project soon to be built in South OKU, Yoachuan Group is also preparing a medium-term investment plan for the next five to ten years. Within that period, the company is targeting the development of a hydroelectric power plant with a capacity of 200 MW to 500 MW in South Sumatra.
If realized, this investment has the potential to increase clean energy capacity in South Sumatra and strengthen the province's position as a hub for renewable energy development in Sumatra.
Conclusion
Sichuan Yoachuan Electric Power Development Co., Ltd. is exploring investment in the construction of a 200–500 MW hydroelectric power plant (PLTA) in South OKU Regency, South Sumatra. South Sumatra Governor, Herman Deru, stated that the province has significant water resource potential to support renewable energy development and is committed to expediting permitting, encouraging the use of local labor through technology transfer, and maintaining environmental sustainability. The initial project developed by PT Midigio in Negeri Cahaya Village is scheduled to begin construction soon with a target completion of approximately 15 months.
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