Posted by: mel | February 10, 2009

Indonesian President urges power company to seek financing from Chinese investor

JAKARTA, Feb. 9 (Xinhua) — Indonesian President Susilo Bambang Yudhoyono asked the state-owned electricity company PLN for a continued negotiation with the Chinese investor on financing the first phase of its 10,000 MW electricity development program, so that the program could be continued intensively, the national Antara news agency reported.

“I have instructed the ministers concerned and the president director of PLN to sit together and conclusively find a solution so that the physical development in the first phase of the program could be completed more quickly,” he said after a working meeting at the PLN office here on Monday.

The president said that the PLN should accelerate the construction of new power plants to reduce the number of regions facing electricity shortages and to overcome outages and make no region in the country suffer from power shortages in the years to come.

“The short-term solution is using generators and if financial support from the national budget is needed for it, it will be fulfilled as the problem could be categorized as an emergency,” he said.

President Yudhoyono also called on the PLN to study the possibility of seeking financial support from other sources particularly domestic banks.

The first phase of the 10,000 MW power program was launched in 2006. According to PLN president director Fahmi Mochtar, the program includes 35 power plants that require a total investment of 8 billion U.S. dollars. By the end of last month, the company had secured 5.5 billion dollars from sources including the Export Import Bank of China and Indonesian domestic banks, and now it is seeking another 2.5 billion dollars.

Editor: Yan

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