Posted by: mel | April 30, 2009

Indonesian power firm and Chinese constructors agree to use RMB in transaction

Xinhua | Editor: Wang Guanqun 

JAKARTA, April 30 (Xinhua) — Indonesian state-run power company (PLN) and Chinese power project contractors agreed to use China’s official currency of Renminbi in each transaction, a senior official of PLN said here on Thursday.

PLN Deputy Director Rudianta said that PLN has communicated the adoption of Renminbi with its Chinese counterparts. The using of Renminbi will ease the Chinese contractors since they don’t have to exchange the funds they received from PLN, he added.

“They calculate their production cost in Renminbi. Besides that, Renminbi currency’s value has been increasing lately. Our Chinese counterparts would earn more benefits with Renminbi and so do we,” the Detik.com quoted Rudianta as saying.

Many Chinese contractors take part in Indonesia government’s mega power plant construction projects across the country with a total capacity of 10,000 Megawatt.

China and Indonesia have agreed on a three-year 100 billion Chinese yuan, about 15 billion U.S. dollars swap pact. The agreement signing took place in Beijing late last month.

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