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./.