INDONESIA AS NEW EMERGING MARKET

Tuesday, October 17, 2006

RUSSIAN COMPANY TO BUILD FIRST RI NUCLEAR POWER PLANT

National News - October 16, 2006

Jongker Rumteh,
The Jakarta Post, Gorontalo

Russian electricity company Raoues is slated to build Indonesia's first nuclear power plant. The facility will be located in Gorontalo, Sulawesi, in order to meet long-term demand for electricity there and in nearby provinces, Gorontalo Governor Fadel Muhamad said.

"The new plant is expected to start operating by the end of 2007. Gorontalo will be registered as the first province in Indonesia to enjoy nuclear electricity," Fadel said.

Fadel said the nuclear plant would be designed to have a generating capacity of 90 megawatts, which would be sold to state-owned electricity company PT PLN at a price one-third lower than that of conventional electricity.

Fadel made the remarks at a Ramadhan get-together in Gorontalo over the weekend with PLN business director Sunggu Anwar Aritonang, PT PLN Suluttenggo general manager Sigit Prakoso Suyoto, and Raoues' representative in Indonesia, Bambang Waskito.

Bambang said the power plant would be built aboard a ship floating off the shore of Gorontalo. The electricity would be transmitted to PT PLN Suluttengo.

A cooperation agreement will reportedly be signed by Fadel and Raoues representatives in Russia. "The Russian side has prepared everything. It's now waiting for Gorontalo province's response," Farino Sariowan, a Raoues project developer in Indonesia, said as quoted by Tempo Interaktif news portal.

Aritonang said the project would help address the growing need for electricity in the country.

Commenting on fears about its safety, Aritonang said while Indonesia does not have experience operating a nuclear power plant, it does have a solid base of knowledge.

"We have many experts who have studied it. Based on existing literature, nuclear power plants are safe," he said.

"We have to cooperate with other countries, though. For the first stage, we will just buy the nuclear-powered electricity from the other country."

In a related development, a member of the Gorontalo Legislative Council, Amir Piola Isa, said the council had approved a plan to establish three infantry headquarters with the aim of safeguarding the security of investments in the province.

"All the people of Gorontalo, as well as the security officers, are ready to safeguard all important installations, including the installation of the floating nuclear power plant belonging to the Russian company," he said.

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