Indonesia Power needs $2 billion in new investment funds

Indonesia Power, a subsidiary of state electricity company PLN, needs at least US$2 billion to finance the rehabilitation and construction of new power plants in Java and Bali in five years from 2002 to 2007, the company?s director for development Djuwano has said.

?For next year alone, we need at least $150 million in new investment funds,? he told reporters following the handing over of ISO 14001 certificate from PT Sucofindo to gas and steam-fueled Tanjung Priok power plant.

He said that the investment funds would also cover the spending for the construction of two power plants in Pamaron and Tangaran in Bali, and for the expansion of the Gunung Salak and Kemojang 4 power plants by 40 megawatt and 60 megawatt, respectively.

The investment funds would be raised from the sale of Indonesia Power?s shares in the Suralaya power plant in Merak, West Java, he said, adding that proceeds from the sale of the company?s stake would reach about Rp 24 trillion or about 10 percent to 15 percent of the total assets of the coal fueled power plant.

He said that part of the investment funds would be raised from foreign sources. ?Two foreign investors have signed a memorandum of understanding agreement on the financing of power projects in Bali,? he added.

Indonesia Power. (*)