From Tempo,20060321-75373,uk.html

Alternative Capital Market to Fund Electricity Project

Tuesday, 21 March, 2006 | 17:30 WIB

Tempo Interactive, Jakarta:The financial mechanism, like the capital market, can be the alternative way of funding an infrastructure project, such as an electric generator or power station.

According to the Chief of the Electricity Forum, Basri Hasan, the challenges of an electric generator project in Indonesia is the funding. This kind of project is capital intensive. He gave as an example the geothermal powered electric power station. To produce 100 megawatts of electricity, the investment needed is US$150 million (Rp1.5 trillion). “Geothermal energy is an alternative because the water sources are all the more difficult and nuclear sources need 10 years of waiting due to the large demand from other countries,” Basri Hasan told the press yesterday. The geothermal potential in Java covers 61 locations, but only five have been transferred to electric generators.

He explained, the state-owned electricity company (PT PLN) cannot only wait for foreign investors. A company must make use of geothermal energy as soon as possible. So using the capital market as alternative funding for the infrastructure may be an excellent option. It is even expected to be an option of long-term investment for the public.

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