ASEAN KEY DESTINATIONS
Indonesian coal powers project in Vietnam
It has also licensed Malaysia's Jaks Resources to invest $2.25 billion to build a coal-fired power plant in northern Vietnam, a state newspaper reported on Friday.
The moves come as coal is expected to take over from hydropower as the leading fuel for new electricity generation in Vietnam in the next five years, a period when annual power consumption is set to rise by 15 percent. Supply had lagged demand by 3 percent in the past five years.
The contract signing for the first project in central Vietnam followed the country's first import of nearly 10,000 tons of Indonesian thermal coal this year, as it also continues to buy electricity from southern China to avoid outages.
It also came as Vietnam took the initial steps toward opening up its power sector by launching a pilot competitive generation market last week to encourage private power generators to boost supply.
Bob Kamandanu, a commissioner at Indonesia's Berau Coal, said high demand from Vietnam's growing economy was a potential boon for Indonesia.
"They are seeking more coal, and Indonesia is one of their destinations," he said.
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