PLN seals establishment of its new subsidiaries

JAKARTA (JP): The president of state-owned electricity company PT Perusahaan Listrik Negara (PLN), Djiteng Marsudi, signed a notary deed yesterday for the establishment of two new subsidiaries with a total authorized capital of Rp 22 trillion (US$9.88 billion).

He said that PT Pembangkitan Tenaga Listrik Jawa Bali I, one of the subsidiaries, has an authorized capital of Rp 10 trillion and the other one, PT pembangkitan Jawa Bali II, has an authorized capital of Rp 12 trillion.

"The two new subsidiaries will manage the operation of PLN's power plants in Java and Bali, while PLN acts as the holding company," Djiteng told reporters after the signing ceremony here yesterday.

Pembangkitan I, with a paid-up capital of Rp 2 billion, will manage PLN's power plants, including the Suralaya coal-fired plant, Saguling hydro-power plant, both in West Java, the Tambak Lorok steam power plant in Semarang, and steam and gas power plants in Bali.

Pembangkitan II, with a paid-up capital of Rp 3 trillion, will manage PLN's power plants including the Paiton coal-fired power plant, Karangkates hydro-power plant, Gresik steam power station, Grati steam power plant, all in East Java, and the Cirata hydro- power plant in West Java.

The power generation plants to be managed by each of the two subsidiaries have a total capacity of 6,000 megawatts.

Djiteng said the two subsidiaries will be managed efficiently to allow them to compete with two privately-operated power generation units in Paiton, East Java. These private generators will have a combined capacity of 2,400 megawatts.

He said PLN will buy power through its centralized procurement division, from private generation plants and from its subsidiaries.

"The prices offered by the private suppliers and the PLN subsidiaries should be competitive," he said.

Djiteng said that the two subsidiaries will make preparations for going public through the domestic stock markets and New York Stock Exchange in April 1997.

Firdaus Akmal was installed yesterday as the president of the Pembangkitan I and Ida Bagus Nurtjahja Manuaba as its chief commissioner.

Adi Satriya was installed as the president of Pembangkitan II and Muslim Abuhudjus as its chief commissioner.(04)