Indonesia, Britain to boost ties in energy industry
Indonesia, Britain to boost ties in energy industry
JAKARTA (JP): The state electricity company PT PLN yesterday
signed memorandums of understanding with two British firms,
National Power and National Grid corporations, for cooperation in
power generation and distribution.
The deals were signed by PLN's president Zuhal, National
Power's director of international business Peter Windsor,
and National Grid's general manager for business development
Clare Phelan.
In addition to the two deals, Minister of Mines and Energy
I.B. Sudjana also signed another memorandum of understanding with
the visiting British Minister of Trade Richard Needham for
promoting bilateral cooperation in the energy development.
At yesterday's signing ceremony, Sudjana said National Power
is committed to getting involved in PLN's power plant
construction and National Grid in the development of power
distribution and transmission facilities.
"For the initial stages, PLN and the British firms will
exchange information and experts," Sudjana said.
"PLN will welcome the two British corporations to become
either our investors or shareholders in PLN's planned
subsidiaries," Zuhal said.
PLN plans to set up two subsidiaries early next year, PT
Pembangkit Jawa Bagian Barat, a company to be responsible for the
operation of PLN's power plants in West and Central Java, and PT
Pembangkit Jawa Bagian Timur, which will tackle the operation of
power stations in East Java and Bali.
Zuhal said Electricite de France (EDF) and two U.S. power
companies have thus far also applied to join PLN's subsidiaries.
In addition to the two subsidiaries, PLN also plans to
establish another subsidiary responsible for electricity
distribution and transmission.
Technology
Needham, who was accompanied by executives of 40 British
companies, said that his government is committed to bringing
British technology for the development of Indonesia's power
industry.
Needham, who arrived here on Tuesday, is scheduled to meet
with Minister of Finance Mar'ie Muhammad, State Minister of
National Development Planning/Chairman of the National
Development Planning Board (Bappenas) Ginandjar Kartasasmita,
Minister of Trade Satrio Budiardjo Joedono, Minister of Public
Works Radinal Moochtar, Minister of Tourism, Post and
Telecommunications Joop Ave and Minister of Transportation
Haryanto Dhanutirto.
A British embassy report noted that Britain's exports to
Indonesia last year reached 331 million pound sterling,
reflecting a 67-percent increase from 1991.
Minister of Investment/Chairman of Investment Coordinating
Board Sanyoto Sastrowardoyo recently reported that Britain ranked
forth among the biggest foreign investors in Indonesia with total
investment commitments of $8 billion for 181 projects as of Oct.
1 since 1967. (fhp)