Romania to invest US$100m in Asam-asam power plant

Sari P. Setiogi, The Jakarta Post, Jakarta

Romania plans to provide US$100 million for the construction of two power plants in the Asam-asam power plant complex in South Kalimantan, said an envoy, and has demanded the Indonesian government to provide a risk guarantee for its investment.

"We are now negotiating with (the Indonesian) government for the guarantee. As a developing country -- just like (Indonesia) -- we cannot afford to invest abroad without any risk guarantee," first secretary Stefan Puio of the Romanian Embassy in Jakarta told The Jakarta Post on Monday.

The expansion plan of the Asam-asam power compound target the development of two new power plants with a combined capacity of 2x50 megawatts (MW). The complex currently has two plants, with a capacity of 60 MW and 65 MW.

Puio said Minister of Finance Boediono and Minister of Energy and Mineral Resources Purnomo Yusgiantoro had approved the issuance of a risk guarantee.

"We are still waiting for approval from President Megawati Soekarnoputri for the provision of such a risk guarantee. That is also why our President has come here," he said.

Romanian President Ion Iliescu is in Indonesia on an official visit until Thursday.

On Monday, some 15 businessmen from Romania met with a group of Indonesian businessmen in a bid to seek ways to boost bilateral trade and investment activities.

"Through this meeting ... we are expecting to increase and diversify trade between Romania and Indonesia," Chamber of Commerce and Industry of Romania and Bucharest Municipality president George Cojocaru said on the sidelines of the meeting.

The National Agency for Export Development (BPEN) recorded $13.6 million in Indonesian products was exported to Romania in 2002, mainly consisting of coffee, natural rubber, margarine, shortening, polycarbon and furniture.

During the first six months of 2003, Indonesian exports to Romania reached $16.1 million, with the former country enjoying a trade surplus of $3 million.

Cojocaru said other commodities such as organic medicine, cosmetics and fish had export potential for Romania.

He also said the tourist industry could be very interesting, as a quarter of the total Romanian population, or some five million people, traveled abroad on annual basis.

Elsewhere, Puio called on Indonesian businessmen to invest in sectors like the steel industry, infrastructure, food industry, agriculture, and tourism in Romania.

Romania is expected to join the European Union in 2007.