Foreign investors delay power investments in Sulawesi

Three foreign investors from Australia, Japan and France have delayed their plans to invest in the power sector in South Sulawesi and Southeast Sulawesi provinces, according to general manager of the state-owned electricity company PLN regional office Fual Alhadi.

The daily Bisnis Indonesia quoted Fual as saying that the delay was due to the low electricity tariff compared to operational cost.

He said that the investors might realize their investment plans once the economy has recovered and power tariff has increased.

But Fual said that despite the current economy problems, power demand in the Sulawesi region was increasing, and the area might suffer power shortage starting 2002 if the current capacity was not increased.(*)