Japanese trading houses and power companies are preparing to launch several large projects in Indonesia, including power generation, the Nihon Keizai Shimbun learned on Monday (27/11/06).
Marubeni Corp is partnering with three firms, among them a subsidiary of Korea Electric Power Corp, to build and operate a large power plant on Java. The trading house won priority negotiation rights from state-owned utility PT PLN.
The coal-fired plant is to produce 600 MW, with the total cost estimated at $650 million to $750 million. Slated for completion in 2010 or later, the facility will sell power wholesale to PLN.
Separately, Sumitomo Corp handled some of the construction to expand a 1.32 million-kw coal-fired power plant on Java.
Construction recently finished after delays due to the currency crisis. The trading house hopes to expand similar facilities because of sharply growing demand for power on the back of Indonesian economic growth.
The Japan Bank for International Cooperation (JBIC) signed an agreement with Indonesia's Mines and Energy Department to cooperate in the biofuel field. They plan to exchange information on technologies to produce automobile fuel from sugar cane and palm, as well as promote the use of alternative energy sources.