Indonesia: U.S. firms urge Obama to “sell hard” on his visit in June
Lahendong Unit 2 geothermal plant, Indonesia (source: aecom.com)
Alexander Richter
21 Mar 2010
U.S. firms active in Indonesia's geothermal market, urge Obama to "sell hard" on their behalf on his visit to the country in June this year, among them Halliburton, Chevron and GE.
In news from the U.S. on an upcoming visit of President Obama to Indonesia in June of this year, “General Electric Co. Chief Executive Jeffrey Immelt wants Barack Obama to “sell hard” in Indonesia as he extols U.S. expertise in industries such as clean energy. He may have to play catch-up — Premier Wen Jiabao will make China’s sales pitch in Jakarta next month.
President Obama’s trip to his childhood home, which has now been delayed until at least June, will be key to a pledge to boost U.S. exports and “lead the global economy” in providing alternatives to fossil fuels. Southeast Asia’s biggest economy, which Immelt included last week among nations that may provide the growth “surprise” of the next decade, has the world’s largest geothermal reserves.
Winning orders for plants that harness the earth’s heat to produce electricity is a test of the U.S.’s ability to compete with China for exports in a region where its investments lag the European Union and Japan. China profited from Indonesia’s earlier energy needs, supplying coal-fired plants in the last decade, said Ravi Krishnaswamy, Singapore-based Asia-Pacific director for Frost & Sullivan, an energy consultancy.
Indonesia’s more than 17,000 islands straddle the Pacific’s “ring of fire” of active volcanoes, providing a key source of energy. Chevron Corp., Houston-based Halliburton Co. and Osaka- based Itochu Corp. are among companies that will sponsor the World Geothermal Congress on the resort island of Bali next month.
Five months ago, Fairfield-Connecticut-based GE loaned $50 million to a subsidiary of Indonesian energy developer Star Energy to help finance a 220-megawatt geothermal plant in Java.
America’s largest companies are seeking to gain a foothold, judging from a U.S.-Asean Business Council trade mission to Indonesia in January. The trip included 62 executives from 27 businesses, including Atlanta-based Coca-Cola Co. and Redmond, Washington-based Microsoft Corp., who sought opportunities in communications, energy and health, Michael Orgill, the council’s manager for Indonesia, said in an interview.
Climate change and clean energy are part of a “comprehensive partnership” that Obama plans to sign with Yudhoyono. The accord also aims to strengthen democracy in the world’s biggest Muslim nation and improve security ties as Indonesia fights terrorists who bombed luxury hotels and tourist spots, including Bali, in the past decade.”
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Source: Business Week
