PLN, Kadin sign accord on business in Vietnam
PLN, Kadin sign accord on business in Vietnam
JAKARTA (JP): The State Electricity Company (PLN) has agreed
to provide technical assistance for Kadin (Indonesian Chamber of
Commerce and Industry) members which intend to expand operation
in electricity-related businesses in Vietnam.
Under an agreement signed here Monday by PLN's president,
Zuhal, and Kadin Chairman Aburizal Bakrie, the state firm will
provide assistance in engineering consultancy and supervision for
power projects to be established by Kadin members in Vietnam
Indonesian Ambassador to Vietnam Djafar H. Assegaff, who
witnessed the signing of the agreement, said that opportunities
are widely open for Indonesian companies to do business in
Vietnam, which is inviting foreign investors to support its
economic development.
"Based on the agreement, PLN will help Kadin members prepare
plans to expand business in Vietnam in the power sector," Zuhal
said, adding that PLN can provide consultancy on power
generation, cable networks, plant engineering and construction.
Aburizal said Kadin, in its program to promote the expansion
of its members' business to Vietnam, will appoint a special
committee to organize companies interested in investing in the
establishment of manufacturing, consultancy and construction
activities in that country.
Opportunities
Assegaff said Indonesian firms will have opportunities to get
involved in the development of electricity in Vietnam because
that country will double its power generation capacity from 4,000
megawatts (MW) this year to 8,000 MW by the year 2000.
The expansion of generation capacity will surely need
expansion in distribution facilities, he said.
A Kadin executive, Abdul Kadir, said Vietnam, for example,
will expand its high-voltage cable transmission networks from
46,900 kilometers to 73,800 kilometers and low-voltage networks
from 594,300 to 1.18 million kilometers.
Assegaff said Indonesian firms should also take the
opportunity to get involved in the development of other
businesses in Vietnam, including the construction of sea ports,
highways, hotels, apartments, agriculture and manufacturing.
He acknowledged that PT Kalbe Farma has operated in the
pharmaceutical industry in Vietnam.
"Kalbe Farma's products now dominates the pharmaceutical
market in Vietnam," he pointed out.
According to the Central Bureau of Statistics, Indonesia's
exports to Vietnam increased to US$171.6 million last year from
$165.3 million in 1992, while its imports from that country rose
to $38 million from $32.4 million. (fhp)