Indonesia, China sign $4.26b power, coal investment deal
Sunday, October 29 2006 - 05:25 PM WIB
The agreement, which involves six projects, was signed in Shanghai on Saturday by Indonesian Minister of Energy and Mineral Resources Purnomo Yusgiantoro and China's Minister of the National Development and Reform Commission, Ma Kai, according to the news agency.
Indonesian President Susilo Bambang Yudhoyono, who was on a five-day working visit to China, witnessed the signing during a meeting of the Indonesia-China Energy Forum in Shanghai.
The deal will further strengthen the economic relation between both countries, particularly in the energy sector, as Indonesia badly needs investment to tap its abundant natural resources, including coal and gas, and China needs natural resources to further develop its economy.
Chinese companies have become a major oil producer in Indonesia and dominate the list of firms competing for contracts to build a 10,000 MW coal-fired power plant in Indonesia.
According to Antara, the agreement includes a $687 million coal-based chemical plant project in South Sulawesi province between PT Sumber Gas Sakti Prima and Chinese firms, including Chengda Engineering Corp.
PT Ciracap Sumber Prima and China's Yunnan Geology and Resources will jointly invest $300 million in a steel mine project in Sukabumi in West Java province.
PT Bosowa Energi and China's Chengda Energy Corp. will jointly invest $170 million in an electrical power generation project in Jeneponto in South Sulawesi province.
PT Antarniaga Nusantara Indonesia will jointly invest $300 million to $1 billion in a coal and chemical project in China's Southwest Yunnan province with Yunnan Chemical Industry Group and China National Chemical Engineering Group Corp. Antara also said firms including state-owned coal mining firm PT Tambang Batu Bara Bukit Asam, and state-owned electrical utility Perusahaan Listrik Negara and China Huadian Corp. will jointly invest $2.1 billion in an electrical power generation plant in Bangko Tengah in South Sumatra province.
Besides, China National Offshore Oil Corporation, Or CNOOC and Indonesia's Ministry of Energy and Mineral Resources will spend $1.5 million on a joint research project, the report said, without specifying the project. (*)