The PB Sudirman hydroelectric power plant, built in 1988, has fewer than 50 years of operational life. In contrast, the planned operating life for this dam is 50 years. This dam is experiencing intensive sedimentation, which results in siltation. Dredging efforts and catchment area management are conducted to extend the operational life of the dam. Therefore, technical and economic analysis of dredging activities and the potential benefits of dredged sediment is needed to determine the solution's effectiveness. We use the site survey method to conduct an environmental impact analysis and interviews with dam managers. The identification of the extent and distribution of erosion-sedimentation was carried out as part of the technical assessment. In the economic study, we calculate the dredging costs and profits from selling dredged sediments, mainly sand. The analysis results show that the dredging of deposits in the foreset slope area is not profitable. There are 17 areas of bank spoil that have economic benefits. This study concludes that the need for dredging costs on foreset slopes is higher than the profit from selling dredging sediments.