VIVAnews - UK-based electricity company International Power put up a joint project with Japan on power plant.
The steam-based power plant (PLTU) in Paiton requires investment of US$1.3 billion and is funded by the consortium of eight foreign banks through the Japan Bank for International Cooperation (JBIC).
"The PLTU has the capacity of 850 megawatt," Industry Ministry MS Hidayat said after meeting UK Trade and Investment Executive Chief Sir Andrew Cahn in Jakarta on Wednesday, March 10.
In addition to the PLTU Paiton, UK has indeed teamed up with Marubeni Corporation and five local partners for the similar project in Cirebon with the capacity of 500 megawatt. The PLTU Cirebon needs US$600 million of investment.
"I told them that each time the Indonesian economic growth exceeds six percent or nearing seven percent, current account will experience deficit due to high frequence of capital goods imports," he said.
To suppress the deficit, said Hidayat, an investment of more than US$3 billion is required in the capital goods industry.
Meantime, Sir Andrew highly appreciated over the solid economic growth in Indonesia. "We're interested in touching on oil and gas, construction, financial services, retail and ICT sectors," he said.
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Translated by: Bonardo Maulana W
