PLN's subsidiary insured for US$3.6 billion

JAKARTA (JP): Eleven local insurance companies won the rights on Friday to provide all risk insurance coverage to PT PLN PJB-I, a subsidiary of state power company PT PLN for US$3.6 billion.

Director of PJB-I Firdaus Akmal said the 11 insurance companies would insure all the company's assets and third party liabilities.

"It is important that the entire operational assets be insured to provide a sense of security to concerned parties, especially the shareholders. Insurance is also important to guarantee the company's future operations," he said after the signing of the underwriting contract.

He said the 11 insurance companies were appointed through a tender arranged by insurance broker company PT Marsh Indonesia, which was also appointed through an open bidding.

They are PT Asuransi Wahana Tata, PT Asuransi Tugu Kresna Pratama, PT Asuransi Astra Buana, PT Asuransi Central Asia, PT Asuransi Dayin Mitra, PT Asuransi Ramayana, PT Asuransi Sinar Mas, PT Asuransi Bina Dana Arta, PT Asuransi Rama Satria and PT Asuransi Tripakarta.

Firdaus said the 11 companies were expected to cooperate with each other well, especially when handling claims, and not delay the payment process.

Established in 1995, PJB-I, with total assets of about $3.6 billion, provides power for areas in Java and Bali for its parent company PT PLN.

PJB-I produced approximately 34,544 giga watt hours of electrical power last year.

The company estimated the power production would increase to reach 39,000 giga watt hours this year. (cat)