Indonesia and Malaysia have signed a cooperation agreement to develop a coal-fired power plant in Sumatra to meet the growing needs for power of the two countries.

Indonesia’s Minister of Energy and Mineral Resources Jero Wacik said with a capacity of 1,000- 2,000 MW, the facility is expected to meet the power demand in Sumatra first and the remainder will be exported to Malaysia.

Under the agreement signed on the sidelines of the ASEAN Senior Officials Meeting in Bali, Indonesia early this week, Malaysia will cover the project’s cost whilst Indonesia is responsible for providing land and coal supply.

The project needs an investment of up to 2.5 billion USD and is scheduled to start operating in 2018, said the Minister. -VNA