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Jul 03, 2024 03:28 PM

Japan Commits to Southeast Asia Grid Project in Move to Counter China

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A motorist rides under a number of power lines in Vietnam’s Ben Tre province in March 2023. Photo: VCG
A motorist rides under a number of power lines in Vietnam’s Ben Tre province in March 2023. Photo: VCG

(Nikkei Asia) — The Japanese government will offer financial assistance to domestic companies, including Kansai Electric Power (KEPCO), for an inter-island power transmission project in Indonesia. The move is part of Tokyo’s efforts to become a player in Southeast Asia’s grid development as China flexes its economic muscle in the region.

KEPCO has been commissioned to conduct a study for an Indonesian government-led project that seeks to use private capital to build the inter-island power grid. The Japanese government will cover about half the costs of the study for KEPCO.

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