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Yudhoyono, Abe sign cooperation agreement on four energy projects

Selasa, 21 Agustus 2007 | 00:04 WIB

Jakarta, NU Online
Indonesian President Susilo Bambang Yudhoyono and Japanese Prime Minister Shinzo Abe signed a cooperation agreement on four energy and power projects at the State Palace here on Monday.

The projects covered by the agreement were the South Sumatra-West Java gas transmission pipeline network, Cilegon power plant, Tarahan coal-fired power plant and Donggi Senoro liquefied natural gas (LNG) project in Central Sulawesi.<>

In the South Sumatra-West Java gas transmission project Indonesia, represented by state-owned gas company PGN, would receive US$1.175 billion in Official Development Assistance (ODA) from Japan.

For its Cilegon power plant project Indonesia would get ODA assistance worth 345 billion US dollars, for the Tarahan project 268 billion US dollars and for the LNG project in Donggi Senoro 366 billion US dollars for its upstream and 1.167 billion for its downstream scchemes.

Energy and Mineral Resources Minister Purnomo Yusgiantoro said the government would give priority to the domestic interest in its cooperation with Japan in gas. Supplies to Japan would be made after domestic needs were met.

"The volume of gas from South Sumatra which has now entered Java is large enough and it will be increased to the system`s capacity in stages," the minister was quoted by Antara news agency as saying.

He said the government was still negotiating with Japan on the volume of natural that would be sent to Japan.

Earlier, Yudhoyono and Abe signed an Indonesia-Japan Economic Parnership Agreement (EPA), a joint statement on the implementation of the EPA and a joint statement on the strengthening of cooperation on climage change and environmental issues.

Japan is a major export destination for Indonesian goods. In 2006, Indonesian exports to Japan were worth 21.7 billion US dollars while its imports from Japan stood at 5.5 billion US dollars.

Indonesia`s primary exports to Japan included agricultural, fishery and plantation products worth 919 million dollars, footwear 118 million dollars, timber and processed products 1.17 billion dollars, rubber 971 million dollars, plastic goods 380 million dollars, nickel and its products 1.30 billion dollars, aluminum and its products 449 million dollars and furniture 5.5 billion dollars. (dar)


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