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TDA AWARDS INDONESIAN GAS PIPELINE DEVELOPMENT GRANT

For Immediate Release

JAKARTA, INDONESIA - (September 9, 2002) Earlier today, the U.S. Trade and Development Agency (TDA) awarded a $655,000 grant to Perusahaan Gas Negara (PGN) of Indonesia to fund a feasibility study on the development of a gas pipeline from East Kalimantan to Java. U.S. Ambassador to the Republic of Indonesia, Ralph L. Boyce, signed the grant agreement on behalf of the U.S. Government and TDA. Mr. W.M.P. Simandjuntak, President and Director of PGN's Head Office, signed on behalf of PGN.

The TDA-funded study will assess Indonesia's gas supply and demand situation, examine potential pipeline routes from East Kalimantan to Java, develop a conceptual design for the pipeline, provide an economic analysis for the project and define a project implementation plan. The proposed gas pipeline will be a strategic project that supplies a much-needed natural resource to Indonesia's population and industrial centers.

The U.S. Trade and Development Agency promotes American private sector participation in developing and middle-income countries, with special emphasis on economic sectors that represent significant U.S. export potential. By funding various forms of technical assistance, training grants, feasibility studies, orientation visits, and business workshops, TDA helps American businesses compete for infrastructure projects in emerging markets. In addition, the agency promotes capacity building initiatives and supports U.S. government trade, economic policy and development objectives around the world.

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