Indonesia and Japan have signed a USD 617 million soft loan agreement to help expand two power plants on the Indonesian island of Java. The funds would be used to increase Jakarta’s Muara Karang gas-fired power plant to 720 MW from 300 MW and to also increase by 225 MW the Muara Tawar plant in West Java province from around 1000 MW. Another Japanese embassy official said construction would begin as soon as possible, with both expansions expected to be finished around 2007.
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