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)