New Delhi/Jakarta, Aug. 24: Reliance Power is considering investing as much as $5 billion in Indonesia, a spokesman for Indonesia’s Vice-President said on Tuesday.
Reliance Power’s chief executive, Mr J.P. Chalasani, met Indonesia’s Vice-President, Mr Boediono, in Jakarta to discuss investment in the southern part of Sumatra island, said Mr Boediono’s spokesman, Mr Yopie Hidayat. “Relia-nce is involved in several projects, including railway and developing a coal mine in South Sumatra. The investment is estimated at $5 billion,” he said.
He said Reliance Power plans to produce 50 million tonnes coal a year within five years from mines in South Sumatra province and plans a 230-km railway that will link its coal operations in Batang Hari, South Sumatra, to a port in Jambi. Mr Hidayat gave no further details.
Southeast Asia’s biggest economy has seen a steady pick up in investor interest over the past 18 months, thanks to a combination of political stability and imp-roving economic growth sustained by strong domestic consumption and dem-and for commodities ranging from coal to palm oil.
For years, foreign invest-ors shunned Indonesia in favour of China and India citing its poor infrastructure, red tape and graft.
Now steel giants ArcelorMittal and Posco are eyeing new production plants and investment in the resources sector.