PLN's subsidiary insured for US$3.6 billion

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)