China agrees to finance Labuhan Angin power plant

China has indicated its readiness to finance the construction of the Labuhan Angin power plant, the third power projects in Indonesia that will be financed by the Chinese government, Bisnis Indonesia reported on Thursday.

The Chinese representative in Indonesia, Tan Weiwan, said in Jakarta on Wednesday that that the Chinese government had agreed to provide up to US$190 million in soft loan to finance the construction of the 220 MW project.

He hoped that China National Machinery & Equipment Import and Export as the contractor of the power plant could be allowed to begin the project because there was no more problem with its financing.

According to Tan, there is an initial agreement that the project will have 35 percent local content, meaning that about 35 percent of the equipment for the project can be procured from Indonesia.

The two other power projects which involved the Chinese government include Cilacap and Palembang power plants. (*)