Japanese investors want to increase their investment in power sector

Japanese investors expressed their interest on Wednesday in investing more in Indonesia?s power sector, Koran Tempo newspaper reported on Thursday.

Several of them have already sought information on the government?s policy on foreign investments in the power sector.

This was revealed during a meeting between the Jakarta Japan Club (JJC)-- a forum of Japanese investors in Jakarta ? and Coordinating Minister for Economy Dorodjatun Kuntjoro-Jakti and Minister of Energy and Mineral Resources Purnomo Yusgiantoro in Jakarta on Wednesday

According to Purnomo, Japanese investors are interested in Indonesia?s power sector.

?They (Japanese investors) asked about several things including average electricity charge, power generation and the present available power stock in Indonesia,? Purnomo said.

The investors also asked about at what electricity rate an investor can make profit, he said after launching a white book on the state-owned electricity firm PT Perusahaan Listrik Negara (PLN)?s average economic price of 7 U.S. cents per kilowatt per hour (kWh.

As far as the present power supply is concerned, the government has explained that there is a difference of 1,000 megawatt (MW) between the peak period and normal period for the power consumption.

The government has asked the JJC to invest in Indonesia?s power sector to reduce the shortage of electricity. (*)