Nearly $9b in power projects approved in Q1: BKPM

The Investment Coordinating Board (BKPM) has passed a number of business permits for foreign investors to build power plants with a total value of US$8.94 billion in the first quarter of this year, The Jakarta Post reported Wednesday.

The 12 permits will facilitate power projects that will produce nearly 6,000 megawatts (MW) of electricity nationwide.

The capacity is expected to be produced by various kinds of power plants ranging from hydro to coal-fired and will contribute to the production of an addition 35,000 MW of electricity for the country by 2019.

The paper quoted BKPM deputy director for investment planning Tamba Hutapea as saying that the figure for the planned investments was more than 10-fold the $780 million recorded in the initial quarter of last year.

?We see that the one-stop licensing service has helped raise interest in the electricity sector, as seen by the significant jump in investment plans;? he said during a press briefing at his office Tuesday.

Out of the overall figure, the largest sum of $6.26 billion will come from a Chinese investor, followed by $1 billion from three Japanese firms and $444 million from five Singaporean firms, according to BKPM data. The 15 power projects are set to be developed in 12 provinces on Sumatra, Java, Sulawesi and Maluku.

A part from the licenses given to foreign investors, the board has also granted permits for 17 power plant projects funded by local firms worth Rp 3.45 trillion (US$265.64 million) in the January to March period. (*)