S. Korea's Kepco mulls building power plants in Indonesia

State-run Korea Electric Power Corp. , or Kepco, is considering building and operating two thermal power plants in Indonesia, said an official at Kepco Wednesday as quoted by Dow Jones.

Kepco signed a memorandum of understanding for the project in February with Indonesia's PT Perusahaan Listrik Negara, in line with an effort by the governments of both countries to boost energy and resources trade, said the official.

Under the preliminary agreement, Kepco would receive coal and gas from Indonesia in return for operating the power plants, he said.

The process was embarked on following a request by the Indonesian government last year when President Megawati Sukarnoputri visited South Korea, he said.

"Kepco is now going through a feasibility study to select a site for the project which will build two 600- megawatt power plants. We are considering Java for a possible site for the plants, but we haven't yet made a final decision," he said.

Kepco plans to complete the feasibility study this year and to start construction sometime in 2004 if the company decides to proceed with the plan.

Meanwhile, the Ministry of Commerce, Industry and Energy of South Korea said in a statement that the government has agreed with Indonesia to expand cooperation in trading and in developing resources, as well as developing power plants.

The statement came after Indonesia's Energy Minister Purnomo Yusgiantoro met with the South Korean government in Seoul Monday.(*)