Romania seeks risk guarantee from RI before investing: Report

Romania requested on Monday a risk guarantee from the Indonesian government before it gets involved in a project to construct a 2x50 megawatt steam power plant in Asam-Asam, South Kalimantan worth some US$100 million.

"We cannot afford to invest abroad without risk guarantees because Romania is a developing country," Romanian embassy first secretary Stefan Puio told The Jakarta Post on the sidelines of a business meeting between businessmen from both countries at the Borobudur Hotel in Central Jakarta.

The business meeting was held in conjunction with the visit of President Ion Iliescu, who will be in Indonesia until Thursday.

Puio said that Minister of Finance Boediono and Minister of Energy and Mineral Resources Purnomo Yusgiantoro had given their approval for such a risk guarantee.

"We are still waiting for approval from President Megawati Soekarnoputri for the provision of such a risk guarantee," Puio added.

Last April, the two countries signed a memorandum of understanding (MOU) agreement on the joint construction of the power plant. Under the agreement, the project will be jointly financed by Bank Mandiri and a Rumanian bank. (*)