Jakarta. Kencana Energi Lestari (KEEN) has won a renewable energy tender from state utility PLN for a 45-megawatt hydropower project valued at an estimated $116 million, marking the company’s largest power-generation project to date.

The hydropower plant will be developed in Pakkat district, Humbang Hasundutan Regency, North Sumatra.

Once completed, Kencana Energi’s total installed generating capacity is expected to increase to 114 MW.

KEEN finance director Giat Widjaja said the project is part of the company’s long-term strategy to expand its contribution to Indonesia’s clean-energy development while supporting the government’s energy-transition agenda toward a more environmentally sustainable energy mix.

“The Pakkat 2 hydropower plant is estimated to require an investment of around $116 million, with a construction target of approximately four years. We are currently awaiting the signing process for the Power Purchase Agreement with PLN before entering the construction phase,” Giat said in a statement on Wednesday.

The new project is expected to strengthen Kencana Energi’s renewable-energy portfolio further, particularly in hydropower, which remains one of the company’s primary business development focuses.

“With this appointment, KEEN is optimistic it can continue strengthening its role as a sustainable national green-energy company while supporting Indonesia’s efforts to achieve its net-zero emissions target and expand clean-energy utilization in the future,” Giat said.

Indonesia has been accelerating renewable-energy development as part of its broader strategy to reduce dependence on fossil fuels and meet long-term climate commitments, with hydropower playing a key role in the country’s energy-transition plans.