The energy sector constitutes one of the key areas where Indonesia and China can best explore mutually beneficial relations and substantiate the strategic partnership signed last year, an Indonesian senior official said Tuesday in Jakarta.

Indonesia is a rich source of oil, gas and other mineral resources but the lack of investment has prevented the country from benefiting from the natural resources, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said.

The country has proven oil reserves of 8.6 billion barrels but the potential reserves could reach as high as 87 billion barrels, which remain unknown due to the lack of investment, he said.

Indonesia also has huge deposits of gas, iron, gold, copper, nickel and coal but they cannot bring a maximum benefit to the country with so little exploration and extraction.

"We need investment coming to this country in order to explore and extract these resources. In return, investors can provide security of supply to their countries... our neighbors and our friends," he said.

Indonesia and China have been cooperating closely in power plant projects, involving initiatives from both the two governments and the private sectors.

Purnomo said some Chinese manufacturers have offered the cheapest power plant proposal to help Indonesia build coal-fired generators for the targeted capacity of 8,900 megawatts in the near future.

"Of course we are open to other manufacturers. But so far the Chinese manufacturers have come up with the lowest price," he said, adding that Chinese investors already involved in gas-fired power plant projects in Cilacap and Palembang, and another power plant in North Sumatra was built with Chinese loans.

Source: Xinhua