Indonesia bats for ASEAN energy stability

Signs electricity supply agreement with Malaysia.

Indonesia’s Minister of Energy and Mineral Resources Jero Wacik said ASEAN countries must strengthen cooperation in maintaining energy stability and sustainability, especially in welcoming the upcoming 2015 ASEAN Economic Community.

In the electrical energy sector, Wacik said that Indonesia and Malaysia have signed a cooperation agreement for the supply of electricity. Both countries will build a coal-based power plant with a capacity of 2,000 MW at a total project cost of US$2.5 million.

He said Indonesia will provide the location, technology, coal and workers, while Malaysia will finance the project. The power plan will be located in Riau, Sumatera, with a submarine cable network crossing to Malaysia to distribute the generated electricity. The project is to be completed by 2018.

He said that besides Malaysia, Singapore and Thailand have also indicated their interest in engaging in cooperation in the energy sector with Indonesia.

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