WB: indonesia needs US$40 billion for investment in power sector

Jakarta (ANTARA News) - State electricity company PT PLN needs an investment of US$40 billion until 2015 for the building of power plants, power transmission and distribution lines, a World Bank official has said.

Power consumption has been predicted to increase, and thus needs huge investment, Country Director of World Bank in Indonesia, Andrew Steer, said here Wednesday.

The investment fund of US$40 billion would be allocated to the building of power plants (US$27 billion), transmission lines (US$5 billion) and distribution lines (US$8 billion), he said, adding that his side was ready to invest in this sector.

With the funds allocated efficiently, PT PLN may reach a growth rate of 8.5 percent till 2015, he said.

Steer also said the investment in the electricity sector would also improve public access to electricity.

Till 2014, the number of people who enjoy electricity would reach 245 million, an increase compared to the 218 million in 2004, and the number would continue to increase to 276 million by 2020, he said.

By 2020, there would be 20 million new power networks when the rate of the people`s accessibility to electricity would reach 90 percent, he said.

The World Bank through one of its networks in Indonesia -- the International Finance Corporation (IFC) --, had disbursed at least US$ 10 billion for investment in the infrastructure projects.

The funds were allocated for transportation (US$4 billion), energy (US$3 billion), urban, water and sanitation projects (US$3 billion).