Investment Board Receives Power Investment Applications Worth US$8.9 billion

Jakarta (Antara Bali) - The Capital Investment Coordinating Board (BKPM) has received investment applications worth US$8.94 billion in the electricity sector from 12 foreign companies in 2015, an official said.

"In the January to March 2015 period, we received applications for principle licenses on foreign investment (PMA) from 12 companies with a total value of US$8.94 billion," Deputy Chief of Capital Investment Planning Affairs of the BKPM, Tamba Hutapea, stated here on Tuesday.

Of the 12 companies that filed investment applications, three with investment worth US$1 billion were from Japan; one with investment worth US$6.26 billion was from China; one with investment worth US$211.6 million was from a Seychelles company; five with investment worth US$444 million were from Singapore; and two worth US$1.02 billion were from companies jointly owned by several countries.

The locations of the electricity projects are scattered in various provinces, such as Aceh, Banten, West Java, East Java, East Kalimantan, Lampung, Maluku, South Sulawesi, North Sulawesi, and North Sumatra.

"There are 15 locations because two of the 12 companies filed for more than one location," Hutapea explained. He added that the number of investment applications filed in the January to February 2015 period was larger than those in the same period last year.

Moreover, President Joko Widodo has reminded state-owned electricity firm PLN of its target to build power plants with a total capacity of 35 thousand megawatts to help provide electricity to domestic industries.

"The target given to PLN was not small. Therefore, it should work (towards the end) as fast as possible," Jokowi, as the president is popularly known, said during his visit to the PLN headquarters in South Jakarta on Tuesday.

The president added that Indonesia needs a great amount of electricity, primarily to help industries that need a considerable amount of power supply.

With regard to reaching the target of 11 thousand megawatts in 2015, Jokowi emphasized that he was confident it could be achieved. He also admitted that he was aware of the constraints faced in the field, but said he was sure they could be resolved. (WDY)