INDONESIA WELCOMES ELECTRICITY FROM BAKUN

By Mohd Nasir Yusoff

JAKARTA, April 24 (Bernama) -- Najib Tun Razak said on Thursday that
Indonesia welcomed the possibility of Malaysia exporting electricity from the
Bakun hydroelectricity project in East Malaysia Sarawak to Kalimantan.

The Prime Minister said Indonesian President Susilo Bambang Yudhoyono
reacted positively when he brought up the matter at their bilateral meeting at
the Istana Merdeka which was also attended by ministers from both sides.

Istana Merdeka is a palace complex in Central Jakarta, Indonesia.

"I have offered the possibility of us assisting Indonesia in fulfilling the
energy needs in Kalimantan and Presiden Susilo has welcomed the offer," he told
Malaysian journalists at the end of his two-day visit to Indonesia Thursday.

Najib said ministers of both countries would hold follow up meetings to
discuss the matter as well as the passage for the construction of undersea
cables to carry electricity from Bakun to Peninsular Malaysia.

The Prime Minister said about 70 per cent of the submarine cables would pass
through Indonesian's waters in Natuna Islands in the South China Sea.

Asked whether Malaysia would offer any special price for the electricity to
be exported to Kalimantan, Najib said, pricing was not discussed yet.

The Prime Minister said Malaysia decided to redevelop the Bakun project as
it was crucial to meet the country's energy requirement especially in the
peninsula.

"This is also to enable us to ensure that our energy mix can be enhanced
through the hydro component which is more sustainable compared to gas which is a
finite resource or coal which needs to be imported," he said.

He said that energy security was among new areas of cooperation discussed in
the bilateral meeting, which was a continuation of the consensus reached at the
meeting between his predecessor Tun Abdullah Ahmad Badawi and Susilo early this
year.

The other area of cooperation is in the high technology sector.

"I would like to stress that we should stretch our capabilities, from the
very basic up to the high technology level. We intend to enhance the value chain
between both countries so that we can assist each other," he said, adding that
Malaysia and Indonesia had the expertise in these fields.

For instance, he said, Malaysia had the expertise in the aerospace
maintenance and repair operation, defence and information communication
technology.
"Indonesia may want to look into giving Malaysia the opportunities in the
high technology sector," he said, adding that it could also cover areas such as
ship building and repair as well as light armament.

He said Malaysia had purchased several light transport aircraft produced by
Indonesia as part of the high technology collaborative framework.

On Thursday nightt Najib and wife Rosmah Mansor and the Malaysian
delegations were hosted to a dinner by Susilo and wife, Ibu Ani Yudhoyono at the
Istana Merdeka.

Najib and wife later left for Kuala Lumpur.

-- BERNAMA