Power sector needs $30 billion investment until 2010

Indonesia’s power sector needs around US$ 30 billion in investment until 2010, the Koran Tempo newspaper reported in its Wednesday edition.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said 50 percent of the above amount will go to build power plants and the remaining half will go to the development of transmission and distribution lines.

“Infact, huge investment is needed for power sector,” Purnomo said while opening the IX Congress of Mechanical and Electrical Association in Bandung on Monday.

According to Purnomo, the government is planning to divide the investment amount. Around 60 percent of the funding will come from the State Budget and the rest will come from foreign sources, including the World Bank and bilateral loans from friendly countries. Indonesia is hoping that the investment will come from private companies.

As a first step, the government will organize an infrastructure summit from Jan. 17-18 in Jakarta to lure new investors. (*)