JAKARTA - PT Waskita Karya Tbk (WSKT), one of Indonesia’s leading state-owned construction companies, has ramped up efforts to accelerate the completion of the Mbay Dam project, located in Nagekeo Regency, East Nusa Tenggara (NTT). The progress of the dam construction has reached an impressive 75.28%, with the project being carried out under a collaboration between Waskita Karya and Bumi Indah through the Operational Cooperation (KSO).
As of the latest update, the Mbay Dam construction is advancing steadily, with a completion target of 100% in the coming months. The dam, which spans an inundation area of 587.61 hectares, is a critical infrastructure project that will play a pivotal role in boosting the agricultural, energy, and water security of the region.
In an official statement, Waskita Karya’s Operations Director II, Dhetik Ariyanto, highlighted the significant progress of the Mbay Dam construction, saying, "Currently, the realization of the construction has reached 75.28 percent." This milestone reflects the company's commitment to delivering the project on time and with high quality, aligning with the strategic objectives of supporting Indonesia’s food security, energy resilience, and overall water security.
Impact on Agriculture and Food Security
One of the primary goals of the Mbay Dam project is to enhance the agricultural productivity in the surrounding regions, especially in Nagekeo Regency. The dam will be crucial in providing irrigation water to an area of 6,240 hectares, which is expected to have a transformative impact on agricultural output. According to Dhetik Ariyanto, the dam’s irrigation system will significantly boost the agricultural sector in the region, particularly in Rendubutowe Village, where farming practices are heavily reliant on access to consistent water sources.
"The Mbay Dam will be able to supply irrigation water to an area of 6,240 hectares. So it is hoped that agricultural production in the Nagekeo Regency area, especially in Rendubutowe Village, can increase," Dhetik explained, emphasizing the vital role the dam will play in strengthening local food security and improving the livelihoods of farmers in the area.
By providing a reliable water supply, the Mbay Dam is expected to help mitigate the impacts of seasonal droughts, which often hinder crop production and threaten the livelihoods of local farmers. The improved irrigation system will help stabilize crop yields, thereby contributing to the region's overall food security and economic development.
Energy and Water Security Boost
In addition to its agricultural benefits, the Mbay Dam is designed to enhance energy and water security in the region. The dam is equipped with a potential capacity for Solar Power Plants (PLTS) of up to 117.5 Megawatts (MW), which will provide a renewable energy source for the local area. This renewable energy capacity is part of Indonesia’s broader efforts to diversify its energy mix and reduce reliance on fossil fuels.
Furthermore, the dam will provide raw water services at a capacity of 205 liters per second. This will not only benefit the agricultural sector but also contribute to the water supply for domestic and industrial use, enhancing the overall water security in East Nusa Tenggara. Dhetik Ariyanto noted the importance of these combined benefits, stating, "The Mbay Dam supports the potential for Solar Power Plants (PLTS) of up to 117.5 Megawatts (MW), and it can provide raw water services of 205 liters per second."
This dual-functionality, combining both renewable energy generation and water supply, positions the Mbay Dam as a critical piece of infrastructure in the region’s long-term development plans.
Flood Control and Environmental Sustainability
Another critical benefit of the Mbay Dam is its ability to reduce flooding in the downstream areas. The dam is designed to mitigate the effects of flooding across a downstream area of 3,200 hectares. The flood control function is vital in preventing damage to homes, agricultural lands, and other vital infrastructure in the region.
Waskita Karya has also prioritized sustainable environmental management throughout the construction process. Dhetik emphasized that the company is not only focused on completing the project on time but also on ensuring that the project is environmentally sustainable and does not disrupt the local ecosystem. He said, "Waskita also pays attention to sustainable environmental management. So, we believe the project will have a direct impact on the economy and the welfare of the people there."
The company’s commitment to environmental sustainability will also contribute to making the Mbay Dam a model project for future infrastructure developments in Indonesia.
Tourism Development
In addition to its agricultural, energy, and flood control benefits, the Mbay Dam is also being developed as a potential tourist destination. The scenic beauty of the area and the dam itself will attract visitors, which could provide a significant boost to the local tourism industry. Dhetik further elaborated on this aspect of the project, stating, "Moreover, the Mbay Dam is also designed as a new tourist destination on Flores Island."
Tourism development is an important consideration in many large infrastructure projects, as it can provide additional sources of revenue and employment for local communities. With the region’s natural beauty and the dam’s engineering marvel, Mbay could become a major draw for tourists, offering both recreational activities and opportunities for local businesses.
Project Timeline and Commitment to Completion
The Mbay Dam project, which carries a total cost of IDR 1.47 trillion, is targeted for completion by 2026. Despite the challenges posed by the scale of the project, Waskita Karya remains confident in its ability to deliver the dam on time, ensuring that all aspects of construction are completed to the highest standards. Dhetik Ariyanto expressed the company’s commitment to the project, saying, "We are committed to completing the construction of the Mbay Dam on time and with high quality."
The Mbay Dam is one of the 77 National Strategic Projects (PSN) outlined in Presidential Regulation Number 12 of 2025, which focuses on Indonesia’s long-term development plan (RPJMN 2025-2029). As part of this broader initiative, the Mbay Dam will play a key role in enhancing the country’s infrastructure and contributing to the achievement of national development goals.
Waskita Karya’s Role in National Infrastructure Development
Waskita Karya continues to play a significant role in Indonesia’s infrastructure development. In addition to the Mbay Dam, the company is involved in other key water infrastructure projects across the country, including the Jragung Dam, Bener Dam, Tiga Dihaji Dam, Karangnongko Dam, and Cibeet Dam. These projects, which are also part of the National Strategic Projects (PSN), are critical to Indonesia’s plans to strengthen its infrastructure and improve its resilience to environmental challenges.
With its proven track record in large-scale infrastructure projects, Waskita Karya remains a cornerstone of Indonesia’s construction sector, helping to drive economic growth and ensuring that the nation’s infrastructure can meet the demands of a rapidly growing population.
Stock Market Performance and Future Prospects
As of the latest data, Waskita Karya’s stock performance has been stable, reflecting investor confidence in the company’s ability to successfully complete major infrastructure projects such as the Mbay Dam. The company’s ongoing projects are seen as vital to Indonesia’s economic growth, and their successful completion will likely contribute to further strengthening Waskita Karya’s position in the market.
Looking forward, Waskita Karya plans to continue expanding its portfolio of infrastructure projects, focusing on sectors like water management, renewable energy, and transportation. With the Mbay Dam set to be completed by 2026, the company is well on its way to making a significant impact on the region’s agricultural, energy, and environmental sectors, all while contributing to Indonesia’s long-term development goals.
