Many foreign investors still interested in electricity projects

Many foreign investors are still interested in investing in the country?s power generation projects although the government?s pricing policy remains unattractive for investment, according to PT Indonesia Power Fridaus Akmal.

"Many foreign investors particularly from China and Hong Kong have expressed interest to build power plants in Indonesia but we will only choose those which offer attractive bargain," Firdaus was quoted as saying by Neraca daily recently.

Akmal said that Indonesia Power, which operates the country?s power plants, was still negotiating with a Chinese investor to build a power plant in Kalimantan. The construction of the power plant which will have a capacity of 2 x 6 MW will reach some US$12 million.

In addition to the planned construction of the 12-MW power plant in Kalimantan, Indonesia Power was also still sought the possibility of constructing other two plants, which would have a capacity of 500 MW and 200 MW, respectively.

He estimated that the construction cost would be about US$1 million per megawatt. "It means that the construction of a power plant with a capacity of 200 MW will need investment of about US$200 million," he added. (*)