Indonesia needs 9.6 billion USD yearly for power projects

JAKARTA, October 16 (Xinhua) — A senior official with Indonesia’s power utility, Perusahaan Listrik Negara (PLN), said on Tuesday that the country is requiring some 90 trillion rupiah (about 9.6 billion U.S. dollars) of power investment each year to cope with growth target set by the government at above 6 percent per year.

“The allocation was needed to finance the construction of new power plants with a total capacity of 5,000 MW along with its transmission systems,” Jarman, power plant director general of the PLN, said on the sidelines of the 19th Electric Power Supply Industry Conference held in Bali.

He said that since investment in the power industry requires great sum of funds, Indonesia is embracing Independent Power Provider (IPP) ran by the private sector to carry out construction of new power plants across the country. The government was only allocating 10 trillion rupiah (about 1 billion U.S. dollars) to partly finance those projects.

“The lion share, 8.6 billion U.S. dollars of projects, should come from the private sector,” he said, quoted by the largest news portal detik.com.

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Posted October 17, 2012 by repit in News

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