European Proposals: $630m Investment in Indonesian Renewable Energy

PLN needs an estimated $10.8 billion to increase electricity generation and transmission in Sumatra. (B1 Photo/Gugun A. Suminarto)

By : Vanesha Manuturi | on 5:33 PM September 14, 2015
Category : Business

Jakarta. European companies have collectively offered up to $630 million in investment proposals in renewable energy projects in Indonesia, the Investment Coordinating Board (BKPM) says.

In a statement on Monday, the BKPM said it received investment proposals of as much as $380 million from an unnamed Italian power company last week, during chairman Franky Sibarani's trip to Milan, Italy, last week.

According to the statement, the Italian company hopes to build two renewable energy power plants in Riau: a $280 million steam-powered electricity generator with a capacity of 250 megawatts and a $100 million geothermal power plant with a capacity of 55 megawatts.

Franky also cited another investment proposal from the UK, including from an investor who aims to build a 200 megawatt solar-powered electricity generator with an estimated investment value of $250 million.

The investment coordinating board is now facilitating a meeting for investors and representatives from the state power operator Perusahaan Listrik Negara (PLN), the Energy and Natural Resources Ministry and potential local partners, the BKPM chairman said.

"The investors [are] currently assessing potential areas for solar-powered electricity generators, such as North Sulawesi, West Kalimantan, South Kalimantan and East Kalimantan, as well as East and West Nusa Tenggara," he said.

In the first half of this year, BKPM recorded 226 ongoing power plant investment projects worth Rp 18.4 trillion ($1.3 billion) in Indonesia. Renewable energy accounts for 10 percent of the projects, including hydro-powered and geothermal generators.

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