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.
Yoga Pranato, a senior official in the Directorate General for Electricity, said recently a series of power plants to be built under a five-year development plan that takes effect from April 1 would have a total capacity of 12,467 megawatts.
