The Indonesian government has offered 16 percent return on equity for investment on power plant, the highest in the region, an official said on Tuesday.

Mohammad Sofyan, head of new and renewable energy of the state utility firm PT Perusahaan Listrik Negara or PLN, said that the investors would also be favored by the country's credit rating status of investment grade.

"This is very high return, while other countries have offered lower than that. Besides, Indonesia is in investment grade now," he said at the firm headquarters here.

Moody's upgraded Indonesia's credit rating status to investment grade on January 18 after similar suit was done by Fitch's on December 15, putting the nation on the radar of global investors.

Indonesia's electrification is only about 74 percent, lower than other neighboring countries which are nearly at 100 percent, giving more opportunity for investors to invests on the sector in the vast archipelago country.

The ratio of electrification in Indonesia is less than 1.5 percent, the ideal figure needed to support the economic growth.

Indonesia targets an economic growth target of 6.6 percent annually by 2014 to reduce poverty.