Quoted From Listrik Indonesia Magazine about Nippon Koei: Smart Infrastructure For National Development

Date : July 2025

ICI

Infrastructure

Exhibition

JAKARTA - Listrik Indonesia magazine interviewed Nicholas Felix, the Chief Representative of Nippon Koei Jakarta, Indonesia, as one of their main focus articles for their magazine issue of May–June 2025 edition. Quoted from the article, our Chief Representative shares his thoughts about Nippon Koei (NK) business Infrastructure Development in Indonesia.

“Nippon Koei has a long and proud history of supporting Indonesia’s sustainable infrastructure development, particularly in the power and energy sector.”

One of the most significant contributions of NK to the energy sector development is the construction of 2 Dams in the Asahan River, North Sumatra. This project supplies electricity to PT. INALUM and become an important foundation in the development of Hydroelectric Power Plants (HEPP) in Indonesia. Recently, NK has completed Asahan No. 3 HEPP, which managed to provide clean energy for more than 100,000 houses. NK is also involved in the development of Peusangan 2 HEPP, where NK is involved as the consultant for the Feasibility Study, Design, and Construction Supervision.

“However, our contribution to infrastructure extends beyond the energy sector. Our commitment to Indonesia’s development includes work in transportation, including roads, railways, and the urban transit system. Additionally, we contribute to water resource management projects, flood control, and irrigation.”

Asahan No. 3 Hydroelectric Power Plant Project.

Other than the energy sector, NK also contributes to the transportation sector, where they are involved in the development of the MRT and LRT Jakarta projects. Furthermore, NK also contributes to supporting Indonesia’s climate resilience and food security by being involved in the Rentang Irrigation Modernization Project.

“By integrating these efforts, we will align with Indonesia’s national development goals and global sustainability objectives, helping to build a resilient and inclusive future for the country.”

Challenge and Opportunity in Energy Transition.
Indonesia is transitioning to a new renewable energy with the target 23% energy mix in 2025. However, Nicholas thinks that the main challenge is how to integrate intermittent renewable energy sources such as solar and wind into the grid.

NK sees this challenge as an opportunity. By applying advanced engineering solutions, global best practices, and innovative financing models, NK would like to help Indonesia accelerate its energy transition while ensuring stability and affordability for consumers and businesses alike.

NK is deploying battery energy storage solutions, which will be essential for managing fluctuations in solar and wind power generation. Through the establishment of NK Energy Europe, the NK Group entered the battery storage business and can provide a one-stop shop service, including investment, operation, and acting as the EPC contractor for the project.

“The drop in battery price is a game-changer for the energy sector. As costs come down, energy storage becomes a more viable option for stabilizing grids, integrating renewables, and even providing backup power for industrial and commercial applications.”

Through NK Energy Europe, NK Group has gained significant experience in the development and operation of battery systems, with the Ruien Energy Storage facility in Belgium boasting a storage capacity of 100 MWh and a maximum power output of 25 MW.

Building The Future Energy Through Direct Investment
Through its subsidiary company, PT. Cikaengan Tirta Energi (CTE), NK also takes the role as the Independent Power Producer (IPP). In 2021, Hydropwer with a capacity of 7,2 MW started its operations and produces around 40 GWh of electricity per year. This project implements the run-of-river scheme that causes minimum impact to the environment, and also implements the CSR program to the community around it.

Furthermore, NK builds a partnership with a local entity such as Perum Jasa Tirta I to explore projects in the sectors of water supply, waste management, disaster management, hydropower, and renewable energy

“Our strategy is built on a few key pillars. First, we are investing in renewable energy assets, particularly hydropower, to contribute directly to Indonesia’s clean energy goals. Second, we want to form strategic partnerships with local developers, government agencies, and financial institutions to ensure our projects are both technically and commercially viable. Third, we’re exploring innovative financing structures, including green bonds and public-private partnerships, to make projects more attractive to investors.”

Transfer Technology and Long History

“NK has worked closely with JICA for many years, helping to implement Japan-funded Development Aid projects that support Indonesia’s infrastructure and energy sector. NK’s role is to provide the technical expertise needed to turn policy goals into real-world solutions.”

Other than technical aspects, NK paid a lot of attention to the knowledge transfer to the local stakeholders. The establishment of PT. Indokoei International, as a foreign investment company (PMA) started operation in 1992, demonstrating NK’s longstanding commitment to Indonesia and investment in local engineering talent.

“One of NK’s greatest strengths is our ability to provide independent, technology-neutral solutions tailored to each project’s specific needs. We’re not tied to any particular technology or manufacturer, which allows us to recommend the best possible solutions based purely on technical and economic merits.

Our expertise spans multiple sectors, from power generation and transmission to water resources and urban development, allowing us to take a holistic approach to infrastructure planning. In Indonesia, this means we’re able to design infrastructure and energy solutions that don’t just work today but are scalable and adaptable for the future."