China considers investing in two Indonesian power plants

China is considering investing in two Indonesian power generating plants -- one coal-fired and the other gas-fired -- in South Sumatra's Musi Banyuasin district, a provincial energy official said.

To realize its investment plan, China would soon sign a memorandum of understanding with the local government-owned Petro Muba company which is engaged in coal and gas exploration, head of the Musi Banyuasin mines and energy service, Zuher Effendi said over the weekend.

China would likely realize its investment plan in 10 years' time while waiting for the results of coal explorations in the subdistricts of Bayung Lincir and Sungai Lilin, the official said.

Zuher estimated that the district had a coal deposit of 3.9 billion tons and a gas deposit of billions of cubic feet exploitable for about 200 years.

The two power generating plants would have a combined capacity of 6,000 megawatts a year and their output would be sold to state electricity company PLN.

The district now has 416 villages but only 200 of them have electricity. (*)