Electricity firm seeking partners in joint ventures
JAKARTA (JP): The state electricity company PT Perusahaan Listrik Negara (PLN) is looking for partners among domestic and foreign firms for cooperation in the establishment of two subsidiaries which will be prepared for going public.
PLN's president, Zuhal, told reporters here yesterday that the company plans to start the operation of its two subsidiaries next year.
The planned subsidiaries will comprise of PT Pembangkit Jawa Bagian Barat, which will be responsible for the operation of PLN's power plants in West and Central Java, and PT Pembangkit Jawa Bagian Timur, which will control the operation of power stations in East Java and Bali.
"Due to our lack of experience in establishing a new business, we are looking for foreign partners which have long been involved in the power industry with strong capitalization," Zuhal said, adding that domestic partners would also be welcomed.
He said four foreign power corporations have applied to join the planned subsidiaries.
The four corporations are National Power Corp. of Britain, EDF Power Corp. of France, and two companies of the United States, he said.
Shares
PLN's director of finance, Djiteng Marsudi, said all of the firms have given assurances that they will be able to prepare the planned subsidiaries for the selling of part of their shares to the public through the country's stock market in two years.
The four companies are also offering technical assistance and the transfer of technology to PLN subsidiaries, he told The Jakarta Post.
Both Djiteng and Zuhal declined to give details of the authorized and paid-up capital of the planned subsidiaries, as well as the possible stake of foreign partners in the subsidiaries.
"Please wait until we complete our financial reports in March next year and after we sell some of our assets," Djiteng said.
He added that PLN has now sold a number of its assets worth Rp 1 trillion (US$459.55 million) to third parties. By March, PLN will have completed the inventory of its assets and disbursed them to PLN as the holding company and its subsidiaries.
Zuhal said that after the operation of two subsidiaries, PLN will set up another subsidiary which will be responsible for electricity distribution and transmission.
PLN, now operating power plants with a total capacity of 12,000 megawatts (MW) and 11,000-kilometer transmission networks, plans to set up more power plants with a combined capacity of 13,000 MB in the coming five years. (fhp)