China's state-owned companies to invest in West Sumatra

“West Sumatra has potential renewable energy resources but they haven’t been optimised yet due to a lack of infrastructure,” said China’s consul-general, Zhu Honghai, as quoted by tempo.co.
According to Zhu, limited infrastructure is the main issue in Indonesia.
During a meeting in Medan, North Sumatra, Zhu committed to facilitating hundreds of Chinese state-owned companies to invest in the region, particularly in sectors such as infrastructure development, geothermal energy, basic industry, agriculture and tourism.
Several Chinese companies are currently involved in the development of micro-hydropower plants, road infrastructure and agribusiness.
Commenting on the issue, West Sumatra Governor Irwan Prayitno said the region had huge potential in geothermal energy.
Around 17 geothermal sites are available and can generate up to 1,650 megawatts of power; five of them are run by private company Supreme Energy and Hitay Energy from Turkey.
“The investment will align with targets from the central government to speed up the availability of electricity,” Irwan said.
According to the head of the Investment Coordinating Board (BKPM) for West Sumatra, Masrul Zein, many companies from China have invested in energy, agriculture and tourism.
“PT Baik Chance Multi-industry from China, for example, is currently applying for a permit to build a cement factory in Nagari Tanjung Lolo in Sijunjung regency,” Masrul said.