Purnomo says Tanjung Jati B project be exempted from counter trade deal
Monday, February 17 2003 - 05:29 AM WIB
The government should not impose counter trade deal on the importation of equipment for Tanjung Jati B steam power plant in Central Java, Energy and Mineral Resources Minister Purnomo told a parliamentary hearing Monday.
Purnomo argued the power project would be fully financed by private investors, and not with state budget funds.
?So, the project will be returned to the private investors, and not to (state power company) PLN,? the minister said.
Japanese trading house Sumitomo Corporation, which will lead the construction of the 1,320-megawatt Tanjung Jati B plant, had found it difficult to find out what commodities could be imported from Indonesia as part of the deal.
Japan Bank for International Cooperation and a consortium of other Japan-based financial institutions will finance the US$1.6 billion project, which is expected to start operation in 2006. (godang)