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Jakarta Post

China's state-owned companies to invest in West Sumatra

  • The Jakarta Post

    The Jakarta Post

Jakarta   /   Thu, July 30, 2015   /  05:20 pm

The Chinese government has expressed interest in investing in renewable energy and infrastructure development in West Sumatra.

'€œWest Sumatra has potential renewable energy resources but they haven't been optimalized yet due to a lack of infrastructure,'€ said China's consul general, Zhu Honghai, as quoted by tempo.co.

According to Honghai, limited infrastructure is the main issue in Indonesia.

During a meeting in Medan, Honghai committed to facilitating hundreds of Chinese state-owned companies to invest in the region, particularly in sectors such as infrastructure development, geothermal energy, basic industry, agriculture and tourism. Several Chinese companies are currently involved in the development microhydro power plants (PLTMH), road infrastructure and agribusiness.

Commenting on the issue, West Sumatra Governor Irwan Prayitno said that the region had huge potential in geothermal energy. Around 17 geothermal sites are available and can generate up to 1,650 megawatts of power; five of them run by private company PT Supreme Energy and Hitay Energy from Turkey.

"The investment will align with targets from the central government to speed up the availability of electricity," said Irwan.

According to the head of the Investment Coordinating Board (BKPM) for West Sumatra Masrul Zein, many companies from China have invested in energy, agriculture and tourism.

"PT Baik Chance Multiindustry from China, for example, is currently applying for a permit to build a cement factory in Nagari Tanjung Lolo in Sijunjung regency," said Masrul. (edn/kes)(+++)

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