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US firms seek opportunities in renewable energy
US companies are exploring investment opportunities in the renewable energy sector and energy efficiency efforts in Indonesia, Coordinating Economic Minister Hatta Rajasa told reporters Tuesday
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S companies are exploring investment opportunities in the renewable energy sector and energy efficiency efforts in Indonesia, Coordinating Economic Minister Hatta Rajasa told reporters Tuesday.
Hatta made the statement on the sideline of a meeting with US Commerce Secretary Gary Locke and representatives of around 40 US companies.
“The American companies expressed their willingness to invest in geothermal development in
Indonesia. They also expressed interest in investing in small power plants needed on our outer islands,” Hatta said.
The American companies also said that they were looking forward to cooperating with Indonesia in developing technologies for energy efficiency, he added.
“All of these will be reported when President Barrack Obama visits Indonesia this June. A joint comprehensive agreement will be signed during the visit,” Hatta said.
Locke is in Indonesia from Tuesday to Wednesday. He is scheduled to give a lecture on the future of clean energy before University of Indonesia students and deliver a speech in front of the American Chamber of Commerce on Wednesday.
Earlier Tuesday, Locke delivered a speech to US businessmen operating in Indonesia. In his speech, Locke encouraged them to get involved in the development of renewable energy as well as energy efficiency efforts in Indonesia.
“We need to help the people of Indonesia achieve their dream by supplying them with energy, clean alternate energy, and also pursuing energy efficiency so the energy that is produced can go a lot further and serve the needs of many more people,” he said.
Chairman of the Indonesian Coordinating Investment Board (BKPM) Gita Wirjawan said US investment increased significantly in the first quarter of this year.
“[US investors] were rare in previous years, but now they are now among the top six [countries],” he said.
Data from BKPM shows that US companies have invested US$436.9 million in the first quarter of this year, or 11.6 percent of the total foreign investment during that period.
US investment in Indonesia reached US$171.5 million in 2009 and US$151.3 million in 2008.
Gita said Indonesia and the US recently signed the Overseas Private Investment Corporation (OPIC) to increase investments. “Under the deal, the US government will provide insurance and financing for equity and debts for US companies investing in Indonesia. Gary Locke said the agreement would open more opportunities for US companies to invest in Indonesia,” Gita said.
President director of Indonesia’s state power firm PT PLN, Dahlan Iskan, who also attended the meeting, said the company was trying to promote a hydroelectric power plant project in Urumuka, Papua. The power plant has a capacity of 350 megawatts and requires about Rp 5 trillion in investments.
“We’ve offered the project to US investors, because Papua has been always an interesting issue for the US. Moreover, US company Freeport also operates in the region,” Dahlan said.
