JAKARTA, Oct. 27 (Xinhua) -- Indonesian government-run power firm PLN and its Malaysian counterpart Tenaga Nasional intended to build inter-connection power from Sumatra to Malaysia's territory, a PLN senior official said here on Tuesday.

    "We had signed the initial terms we would agree in the agreements late last week," said Bambang Praptono, Technology and Planning Director at the PLN.

    Under the initial agreement, Indonesia would supply 300 Megawatt of power to Malaysia in night time through its Sumatra power transmission network. Meanwhile, Malaysia would supply electricity to Indonesia's Sumatra on day time at similar capacity, Bambang said.

    According to Bambang, the inter connection power agreement with Malaysia would benefit Indonesia as it would save its operation cost during peak hours.

    To build the power transmission linking Malaysia peninsula and Sumatra island, Bambang said that it would require at least 300 million U.S. dollars. Bambang added that PLN and Tenaga Nasional would establish a joint firm to carry out the project, expected to be completed in 2015.

    Bambang said that PLN and Tenaga Nasional are yet to attain the price for the power exchange program.