Sumitomo Corporation, one of Japan's oldest and leading business icon's, is set to expand its power, mining and transportation businesses in Indonesia, on the back of abundant resources and fairly stable political and security conditions.

The company's president and chief executive officer, Motoyuki Oka, said on Thursday that with some US$3.5 billion already invested in Indonesia over the past 50 years, Sumitomo was seeking to expand further and tap more business opportunities here.

"Indonesia is an important country for Sumitomo, and we will expand our business here," said Motoyuki after meeting with President Susilo Bambang Yudhoyono to discuss the company's investment plan.

"We are discussing with the President possible projects in the power sector based on geothermal, coal and natural gas resources. We are also discussing projects in the mining and transportation sector," he said.

Motoyuki refused to disclose the details of the company's investment plan. However, based on the company's written report to Susilo, it is planning to invest between $2 billion and $3 billion to expand its copper production in the Elang field in Sumbawa, West Nusa Tenggara.

It is also planning to construct a 14.3-kilometer mass railway system in Jakarta, which would be supported by the Japanese government under the Official Development Assistance (ODA) program.

The system, which would link areas in Lebak Bulus, Blok M, Setiabudi and Dukuh Atas, is expected to cost some $700 million.

In the power sector, Sumitomo is preparing to construct several geothermal power plants in Java and Sumatra with a capacity of between 40 megawatts (MW) and 110 MW.

It is also planning to expand the capacity of the Tanjung Jati B power plants by adding another two units of coal-fired plants with a capacity of 660 MW each.

The company is also looking into the possibility of acquiring an existing gas-fired plant in West Java with a capacity of 720 MW, as well as constructing an additional one with a capacity of between 750 MW and 1,000 MW. However, the company did not disclose the amount of its investment for the power projects.

Aside from the investment plans, the company is also seeking an opportunity to extend its contract with the government on the purchase of liquefied natural gas (LNG) from the Bontang field in East Kalimantan to be exported to Japan and South Korea.

"The meeting between Sumitomo and President Susilo was not only a discussion about investment plans, but also about the company's interest in extending its LNG export contract," said Minister of Energy and Mineral Resources Purnomo Yusgiantoro.

Purnomo said the contract, which allows Sumitomo to ship some 12 million metric tons of LNG annually, will expire in 2010.

The history of Sumitomo dates back to Masatomo Sumitomo (1585 - 1652), who opened a successful book and medicine shop in Kyoto in the 17th century before expanding to other field of business.