RI and Malaysia expand energy cooperation
JAKARTA (JP): Indonesia and Malaysia agreed here yesterday to jointly build a coal-fired power plant in Riau to supply electricity to Sumatra and Malaysia.
Minister of Mines and Energy I.B. Sudjana and Malaysia's Minister of Energy, Post and Telecommunications Leo Moggie signed a memorandum of understanding on the project.
Leo said the project would be developed by a joint venture of Indonesia's state-owned electricity company PLN, state-owned coal mining company PT Tambang Batubara Bukit Asam and Malaysia's state-owned electricity company Tenaga Nasional Bhd.
"The companies will soon undertake a feasibility study," he was quoted by Antara as saying.
The power plant in Cerenti village, in Indragiri Hulu, Riau, will be designed with an installed capacity of 1,200 Megawatt (MW).
Tambang Bukit Asam will supply the coal for the power plant from its coal mine in Tanjung Enim, South Sumatra.
Leo did not give further details on the project.
The power plant will also supply Malaysia either via undersea cables or overhead cables strung along a bridge that the two countries propose to build between Sumatra and Malaysia.
He said Malaysia's total power generation capacity was now between 6,500 MW and 7,000 MW and its demand for electricity grew 11 percent annually.
Leo said he and Sudjana had also discussed Malaysia's plan to develop a 1,750 MW hydropower plant in Bakun, Serawak which would be supply Malaysia through undersea cables partly crossing the Indonesian territory.
The cables' installation is due to be completed in 2003.
Undersea pipelines
Indonesia and Malaysia will also cooperate in developing undersea pipelines to bring liquefied natural gas (LNG) from the Natuna gasfield near Singapore to Arun in Aceh. Some of the cables would cross Malaysia territory, he said.
South Korea's Minister of Trade, Industry and Energy Chang Yuel Lim said yesterday South Korea planned to increase its imports of oil, LNG and coal from Indonesia.
South Korea imported 38.3 million barrels of crude oil and condensate from Indonesia in 1996, 2.5 million tons of coal and 5.9 million tons of LNG, Lim said at the end of the 17th Conference of Indonesia-Korea Joint Committee for Mineral Resources and Energy Cooperation.
Lim added that South Korean imports of LNG would increase to 9.5 million tons in 2001 and 26 tons in 2010.
"We plan to import an additional 1 million tons of LNG (this year) from Indonesia," he said.
Lim said Korea was also interested in forging cooperation with Indonesia in the power generation sector, especially in the development of power plants. (jsk)