The hydroelectric power plants will be constructed in Indonesia by Iranian companies over the next five years, Iran’s Energy Minister Hamid Chitchian said following a conference with Indonesia’s Economy Minister Sofyan Djalil, Iran’s Press TV reported on Monday.
“Indonesia plans to commission and build 48 power plants in line with climatic changes in the country. Similarly, the country would commission small-scale hydroelectric power plants with 1-10 megawatt capacity range”, the Indonesian minister said, adding that Iranian contractors “would be of great help in Indonesian electricity market in that specific activity.”
Jakarta is aiming to resume oil imports from Iran, joining countries such as China, India, Japan, and South Korea whom are the primary customers of Iranian crude in Asia. The Asian nation is currently importing 800,000 to 900,000 barrels per day of crude oil.
Last year Iran and Indonesia had inked a deal to build a refinery in Indonesia to process 300,000 barrels per day of Iranian heavy crude oil. The project requires around $3 billion of investment, 70 percent of which will be funded by Indonesia with the remainder to be funded by Iran.
Trade between the two nations was at $450 million in 2014, a fall from $2 billion prior to the intensified sanctions by the West on Iran in 2012. The largest obstacle in cooperation between the two nations has been banking as cash transactions with Iran have been restricted by these sanctions.
Iran and the P5+1 powers (China, France, Russia, UK, U.S., and Germany) agreed on a preliminary deal over the country’s nuclear program earlier in April. Under the framework of the deal, Iran will not pursue new enrichment facilities, or heavy water reactors, for 15 years. A final agreement needs to be reached by June 30.