30 July 2002 – PT Indonesia Power is studying a plan to co-operate with a Chinese investor in the construction of three coal fired power generating projects that will cost around $81m.

Chief spokesman of PT Indonesia Power R. Soemarsono said the state-owned company has signed with the regional administrations of Riau and East Kalimantan where the projects will be built in coal mining areas.

Soemarsono also said the company has discussed the 300 MW capacity project with Chinese investors and a final decision is expected after the last meeting in China. He said Indonesia Power wants to utilize the abundant coal reserves in the country. Last year, the country produced 72 million tons of coal and 22 million were for domestic consumption.

Soemarsono said the invention of technology that could transmit power through submarine cables would open the possibility of exporting power from the country.

Meanwhile, Rolls Royce will conduct feasibility study on a gas powered electricity generating plant with a capacity of 40 MW in Riau, a provincial official said. Herliyan Saleh, chairman of the Investment Biard in Riau said the regional administration and the British company have reached an agreement on power development in the province which still need additional supply of electricity.