Tokyo Electric in Sibolga

Tokyo Electric in Sibolga

TOKYO (AFP): Tokyo Electric Power Co. Inc. will start generating electricity in Southeast Asian countries in a shift from its long-standing policy of limiting its activity to within Japan, a major daily said.

Japan's largest electric power supplier decided to start overseas business because of sluggish demand at home, as well as growing energy demands in other Asian countries, the Asahi Shimbun said Sunday.

As its first overseas project, Tokyo Electric Power hopes to participate in an Indonesian thermal power plant construction with an investment of "several hundreds million yen (several million dollars," the paper said, quoting company officials.

The Indonesian government plans to build the power plant in Sibolga, northern Sumatra at a cost of about four billion yen (US$38 million), installing two 100,000-kilowatt power generators.

Tokyo Electric Power plans to invest in a joint venture to be set up by two Japanese trading houses -- Mitsubishi Corp. and Mitsui and Co. -- an Indonesia conglomerate and U.S. and European power suppliers to take part in the construction and management of the facility, the daily said.