PLN to seek loans after delaying its bond issuance
PLN to seek loans after delaying its bond issuance
JAKARTA (JP): The state electricity company PLN plans to seek Rp 500 billion (US$226.3 million) in loans from domestic banks after delaying its bond issuance for the second time this week.
"If we fail to float our bonds again later this month, we will raise loans from domestic banks," the firm's president, Djiteng Marsudi, said in a hearing between Minister of Mines and Energy I.B. Sudjana and Commission VI of the House of Representatives (DPR) here on Tuesday.
PLN, which failed to float five-year bonds worth Rp 1 trillion last November, decided to delay the bond issuance again this week. The bonds were originally planned for issuance in two stages -- the first half to be issued from Feb. 6 to Feb. 10 and the second half from March 21 to March 27.
The funds to be raised from the bond issuance are intended to finance the construction of electricity transmission networks in Java, the expansion of a coal-fired power plant in Muara Karang, North Jakarta, as well as the construction of new electricity plants and the improvement of electricity distribution networks in Sumatra.
Djiteng told the commission, which deals with direct investment and the mining, energy and manufacturing industries, that PLN was forced to accrue Rp 700 billion in loans from domestic banks after delaying its bond issuance last November.
Minister of Mines and Energy I.B. Sudjana said the delays of the bond issuance were based on a suggestion by Minister of Finance Mar'ie Muhammad, who considered it unfavorable for PLN to float the bonds at present after last week's 0.5-point increase in U.S. interest rates.
"But we have received a green light from the monetary authority to offer the bonds at the end of this month, or early next month," Djiteng said.
Profits
Sudjana told the commission that PLN's profit will likely decline by 5.3 percent to Rp 552.6 billion this fiscal year from Rp 583.5 billion in 1993-1994.
The company's profit is expected to surge to Rp 1.63 trillion in 1995-1996 due to the conversion of the firing systems of a number of its power generation plants from use of oil to natural gas.
The profit of the state oil company Pertamina is also expected to decrease to Rp 575.3 billion in 1994-1995 from Rp 624.5 billion in the previous year.
"Pertamina's profit will likely decline further to Rp 525.7 billion in 1995-1996," he said.
Sudjana also said that PT Tambang Batubara Bukit Asam, the state-owned coal mining company, expects to more than double its profit to Rp 132.2 billion in 1994-1995 from Rp 57 billion in 1993-1994. Its profit is expected to further increase to Rp 143 billion in 1995-1996.
PT Aneka Tambang, the state-owned general mining firm, is projected to see a profit of Rp 13.9 billion in 1994-1995 and Rp 33.1 billion in the following fiscal year, as compared to Rp 10 billion in 1993.
The profit of PT Tambang Timah, the state-owned tin mining firm, is likely to surge to Rp 112.1 billion in 1994-1995 from Rp 20.6 billion last fiscal year. Its profit may fall back to Rp 90.1 billion in 1995-1996.
The profit of Perum Gas Negara, the state-owned industrial gas company, may increase from Rp 48.8 billion in 1993-1994 to Rp 55.6 billion in 1994-1995 and to Rp 69 billion in the following fiscal year.(fhp)