The Japanese Government announced on March 18 that it will lend Indonesia 27
billion JPY (298 million USD) to build a 40 billion JPY geo-thermal power plant
in Lumut Balai, South Sumatra.
The loan will be provided through the
Japan International Cooperation Agency (JICA).
With this decision, the
Japanese Government aims to help its companies, including Sumitomo Shoji and
Fuji Denki Holdings, win bidding contracts to sell electricity generation
equipment to Indonesia .
Lying along the Pacific Ring of Fire with
nearly 170 active volcanoes, the Indonesian archipelago has the world largest
geo-thermal power potential of up to 27 million kW. Meanwhile, Japan boasts
advanced geo-thermal power generation technology./.