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Jakarta throws switch on power

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THE Indonesian Government is inviting investors to generate about three-quarters of the nation's electricity supply.

The move follows the signing on February 12 of a foreign joint venture that effectively opened Indonesia's electrical power sector to private investment.

Energy analysts said the invitation, announced last Wednesday by the Department of Mines and Energy, had far-reaching implications for the role of foreign investment in Indonesia's efforts to expand its manufacturing sector.

Reflecting a familiar theme in the region, the continued growth of the Indonesian economy is tied to the growth of the country's export-oriented manufacturing sector.

The future of that sector is, in turn, dependent on increased capacity of Indonesia's electrical power grid.

Jack Whippen, of the US-based consultancy Gas Ventures Advisors, said recent developments could serve as a model for other countries in the region, such as India to China, with traditionally closed power sectors.

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