Inter RAO will conduct a feasibility study on a coal port project in Indonesia worth more than 10 trillion rupiah ($1.2 billion), a local official said Friday.
Indonesia has seen a pickup in foreign direct investor interest this year, thanks to political stability and strong economic growth that is sustained by domestic consumption and demand for commodities such as coal and palm oil.
The provincial government of the West Java province has offered 14 geothermal projects and power plant projects to generate up to 900 megawatts of power, the head of West Java's investment board Agustiar said.
"They showed their interest. … One of the points is they will enter the development of Subang port for coal," Agustiar said.
Indonesia is looking to both boost its infrastructure for resource extraction and lift unreliable power supply, and the electricity generated from the coal plants would power industrial cities on the northwestern coast of the island.
Those projects will be offered through public-private partnership, he added.
"We are willing to invest 100 percent and work with the province. The total investment could reach $2 billion," Inter RAO's representative in Indonesia Raam Saraogi was quoted as saying by the Jakarta Post.