RI to invest $18b in power industry

RI to invest $18b in power industry

SINGAPORE (Dow Jones):Indonesia plans to invest US$18 billion
in its power sector to meet increasing domestic demand in the
next 10 years, Endro Utomo Notodisuryo, Commissioner of state-
owned power company, Perusahaan Listrik Negara, or PLN, told Dow
Jones Newswires Monday.

The proposed US$18 billion investment is based on assumptions
of a steady annual 4 percent growth in gross domestic product for
four years up to 2004, 8 percent GDP growth rate for the
subsequent years into 2010, and an annual 9 percent increase for
the next 10 years in power consumption.

Notodisuryo was speaking in Singapore after a presentation on
the implementation of Indonesia's power sector restructuring
policy.

The 10-year investment plan will concentrate on power
generation and transmissions projects, Notodisuryo said.
Indonesia is keen to form partnerships with foreign investors as
it aims toward increased competition in the power sector to
reduce the burden of PLN that is heavily in debt.

While new regulations allow "new investments by foreign
companies to own up to 95 percent of total shares in generation
plants," PLN reserves the "first right-of-refusal" in
transmission and distribution investments, Notodisuryo said.

However, Indonesia's power reform, Notodisuryo said, is caught
in a dilemma due to the current political instability. Proposed
policies are pending approvals by government and parliament.

"The (Indonesian) government is facing so many problems and
has to respond to so many issues right now," Notodisuryo said.

Notodisuryo is also inspector-general for electricity and
energy development in Indonesia's ministry of mines and energy.
He was previously director-general at the ministry.