Indonesian state utility PT Perusahaan Listrik Negara (PLN) and electricity generation, transmission, distribution and sales company, Tenaga Nasional Berhad (TNB), have teamed up to build a $450m power transmission project throughout the Malacca strait between Malaysia and Sumatra.

PLN president, Fahmi Muchtar, said that the project would enable power import and export between the neighboring nations.

Muchtar was quoted by the Bisnis Indonesia newspaper as saying that both countries have decided to conduct serious discussions regarding the project, with a meeting sceduled for June 2009.

The PLN president added that a concrete agreement is likely to be signed by both countries by the end of 2009.