PLN to issue new bonds
State power company PT PLN plans to issue a further Rp 10 trillion (US$902.6 million) of bonds this year to help finance its operations and power plant construction.
President director Fahmi Mochtar said Wednesday the company would issue new bonds - including conventional, global and Islamic bonds (sukuk) - after evaluating the market response to its latest bond issues.
Earlier this year, PLN issued Rp 1.5 trillion worth of bonds and later increased this to Rp 2.2 trillion following high demand from investors.
"We plan to issue more bonds in stages throughout this year," Fahmi said.
In 2009, PLN needs Rp 57 trillion to finance its operations, including completing the financing of the 10,000 megawatt (MW) coal-fired power plant program, scheduled to be finished in 2010.
"The funds will come in part from the state budget and loans," he said.
PLN has been implementing the government-initiated construction of power plant projects to me
et the rising demand for electricity.
About 6,800 MW of the program is located in Java and Bali, provided by 10 new power plants, while the remaining 3,200 MW is located outside the Java-Bali system to be generated by about 20 smaller power plants.
To complete the projects by 2010, PLN will need Rp 17.33 trillion to build power stations and Rp 8.58 trillion for transmission systems.
Fahmi said PLN would soon start project tenders for the second 10,000 MW power plants program, which is scheduled for completion in 2014
PLN aims to increase revenue by 11 percent this year. estimate to generate Rp 89 trillion in revenue this year," Fahmi said.
Higher revenue would push up profits by 215 percent from Rp 3.2 trillion in 2008 to Rp 10.1 trillion this year.
PLN will consume 7.9 million kiloliters of oil-based fuels this year, down by 28.2 percent from 11 million in 2008.
The cut will reduce the required power subsidy from Rp 88 trillion to Rp 46 trillion.
The cut fuel oil use reflects conversion to gas and coal.
In 2009, PLN plans to produce 121,849 gigawatt hour (GWh) of electricity, 6.5 percent higher that the 114,447 GWh in 2008. Of total capacity, 23 percent is still from oil-fired plant.
To maintain revenue, PLN will request a higher subsidy after the government reduced on Monday the pricing penalties imposed on industries with high consumption.
The penalty system previously required industries to pay two times higher than the usual rates for peak hour consumption, when their consumption rose more than 50 percent above their previous average.
Fahmi forecast PLN would lose Rp 1.38 trillion from this. would ask the government to compensate the loss in the form of subsidy," Fahmi said.
Meanwhile, two PLN subsidiary and PT Pembangkitan Jawa Bali - are due to go public via initial public offerings (IPOs) next year.
Fahmi, however, refused to disclose the amount of funds PLN expected to raise from IPOs.
Indonesia Power operates eight power plants in Jawa and Bali. In 2006, Indonesia Power supplied 45.071 GWh or about 40,08 percent of the total production of the Jawa Bali System.
Meanwhile, PJB operates eight power plants with installed capacity of 6,526 MW.
PLN now has six subsidiaries and a joint venture company.
Fahmi said PLN would settle its debts first to its subsidiaries before selling any of them to the public.
"The total amount (of debts) is more than Rp 10 trillion."
On another issue, Fahmi also said PLN would halt negotiation of a power purchase agreement with state coal miner PT Tambang Batubara Bukit Asam should the company refuse to cut its price offer to PLN.
Bukit Asam plans to build two coal-fired power plants with a total capacity of 2600 MW in Tanjung Enim, South Sumatra, and has asked PLN to buy the electricity.
Bukit Asam expected the plants to fully operational by 2013. But long price negotiations threaten these plans and may lead them being dropped.
According to Fahmi, Bukit Asam insists to sell electricity to PLN at 5.2 US cents per kilowatt hour (kWh).
"Our benchmark is 4.28 cents per kWh," Fahmi said.
"We will give Bukit Asam three months to reconsider the price, or otherwise we will find another partner." (hwa)
State power company PT PLN plans to issue a further Rp 10 trillion (US$902.6 million) of bonds this year to help finance its operations and power plant construction.
President director Fahmi Mochtar said Wednesday the company would issue new bonds - including conventional, global and Islamic bonds (sukuk) - after evaluating the market response to its latest bond issues.
Earlier this year, PLN issued Rp 1.5 trillion worth of bonds and later increased this to Rp 2.2 trillion following high demand from investors.
"We plan to issue more bonds in stages throughout this year," Fahmi said.
In 2009, PLN needs Rp 57 trillion to finance its operations, including completing the financing of the 10,000 megawatt (MW) coal-fired power plant program, scheduled to be finished in 2010.
"The funds will come in part from the state budget and loans," he said.
PLN has been implementing the government-initiated construction of power plant projects to me
et the rising demand for electricity.About 6,800 MW of the program is located in Java and Bali, provided by 10 new power plants, while the remaining 3,200 MW is located outside the Java-Bali system to be generated by about 20 smaller power plants.
To complete the projects by 2010, PLN will need Rp 17.33 trillion to build power stations and Rp 8.58 trillion for transmission systems.
Fahmi said PLN would soon start project tenders for the second 10,000 MW power plants program, which is scheduled for completion in 2014
PLN aims to increase revenue by 11 percent this year. estimate to generate Rp 89 trillion in revenue this year," Fahmi said.
Higher revenue would push up profits by 215 percent from Rp 3.2 trillion in 2008 to Rp 10.1 trillion this year.
PLN will consume 7.9 million kiloliters of oil-based fuels this year, down by 28.2 percent from 11 million in 2008.
The cut will reduce the required power subsidy from Rp 88 trillion to Rp 46 trillion.
The cut fuel oil use reflects conversion to gas and coal.
In 2009, PLN plans to produce 121,849 gigawatt hour (GWh) of electricity, 6.5 percent higher that the 114,447 GWh in 2008. Of total capacity, 23 percent is still from oil-fired plant.
To maintain revenue, PLN will request a higher subsidy after the government reduced on Monday the pricing penalties imposed on industries with high consumption.
The penalty system previously required industries to pay two times higher than the usual rates for peak hour consumption, when their consumption rose more than 50 percent above their previous average.
Fahmi forecast PLN would lose Rp 1.38 trillion from this. would ask the government to compensate the loss in the form of subsidy," Fahmi said.
Meanwhile, two PLN subsidiary and PT Pembangkitan Jawa Bali - are due to go public via initial public offerings (IPOs) next year.
Fahmi, however, refused to disclose the amount of funds PLN expected to raise from IPOs.
Indonesia Power operates eight power plants in Jawa and Bali. In 2006, Indonesia Power supplied 45.071 GWh or about 40,08 percent of the total production of the Jawa Bali System.
Meanwhile, PJB operates eight power plants with installed capacity of 6,526 MW.
PLN now has six subsidiaries and a joint venture company.
Fahmi said PLN would settle its debts first to its subsidiaries before selling any of them to the public.
"The total amount (of debts) is more than Rp 10 trillion."
On another issue, Fahmi also said PLN would halt negotiation of a power purchase agreement with state coal miner PT Tambang Batubara Bukit Asam should the company refuse to cut its price offer to PLN.
Bukit Asam plans to build two coal-fired power plants with a total capacity of 2600 MW in Tanjung Enim, South Sumatra, and has asked PLN to buy the electricity.
Bukit Asam expected the plants to fully operational by 2013. But long price negotiations threaten these plans and may lead them being dropped.
According to Fahmi, Bukit Asam insists to sell electricity to PLN at 5.2 US cents per kilowatt hour (kWh).
"Our benchmark is 4.28 cents per kWh," Fahmi said.
"We will give Bukit Asam three months to reconsider the price, or otherwise we will find another partner." (hwa)
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