Jakarta, INTI - PT Kencana Energi Lestari Tbk won the Independent Power Producer (IPP) electricity procurement tender for the Pakkat 2 Hydroelectric Power Plant (PLTA) from PT PLN, as outlined in a Letter of Intent (LOI) dated May 11, 2026.
The PLTA Pakkat 2 project has a capacity of 45 MW, and it will be Kencana Energi Lestari’s largest project to date. PLTA Pakkat 2 will be built in Pakkat District, Humbang Hasundutan Regency, North Sumatra.
With the addition of the PLTA project, Kencana Energi Lestari’s installed capacity is projected to increase significantly from the current 69 MW to 114 MW upon completion and commercial operation.
After Signing PPA with PLN, Construction will Last 4 Years
Giat Widjaja, Finance Director of Kencana Energi Lestari, stated that this project is part of the company’s long-term strategy to increase its contribution to national clean energy development.
"PLTA Pakkat 2 is estimated to require an investment of around US$116 million, with a targeted construction period of approximately four years," he wrote in an official statement on Wednesday, May 13.
Giat explained that the company’s management is currently awaiting the signing of the Power Purchase Agreement (PPA) with PLN before entering the construction phase.
"This new project will further strengthen the company's renewable energy generation portfolio, particularly in the hydropower sector, which is one of our main focuses for business development," he said.
With this appointment, Giat is optimistic that Kencana Energi Lestari can continue to strengthen its role as a national green energy company while supporting Indonesia's efforts to achieve its net-zero emission target and expand the use of clean energy.
Conclusion
PT Kencana Energi Lestari Tbk has won the tender for the 45 MW Pakkat 2 hydroelectric power plant project from PLN, which will be built in Humbang Hasundutan, North Sumatra. This project is Kencana Energi Lestari’s largest power plant to date and is expected to increase the company's installed capacity from 69 MW to 114 MW after commercial operations. The company estimates the project investment value at around US$116 million with a construction period of around four years.
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