JAKARTA. In a bid to meet growing demand, state-owned utilities firm PT Perusahaan Listrik Negara (PLN) will expand its power capacity by 8.3 percent to reach 39,000 megawatts by year-end.
According to PLN planning and risk management director Murtaqi Syamsuddin, the capacity increase would be achieved with the completion of the construction of some power plants that will produce a combined 10,000 megawatts.
The power plants’ construction is part of the first fast track program the state company launched in 2006.
At the moment, the company is also working to expand its network, including constructing 10 main stations in Java and establishing transmission lines, connecting Meulaboh and Blangpidie in Aceh, Martapura and Muara Baru in South Kalimantan, Teluk Betung and Sungai Lilin in South Sumatra, and Teluk Kuantan and Rengat in Riau.
Each line stretches between 40 and 50 kilometers.
Meanwhile, PLN business division head Benny Marbun stated that electricity consumption nationwide in May 2013 alone reached 16.07 terawatt hours (TWh), rising by 9.96 percent compared to a year earlier.
“In total, the electricity consumption in January-May this year grew by 7.6 percent compared to the same period in 2012,” he said in a statement published recently.
Electricity consumption in the business sector also grew, as shown by data from PLN. In May, the growth rate reached 10 percent, while a month before, the rate stood at 9 percent.
With growing consumption, the company expects to book a 9 percent increase in its revenues to Rp 253.6 trillion (US$25.66 billion) this year.
PLN finance director Setio Anggoro Dewo said the net profit growth would be in line with that of the revenues.
PLN has allocated Rp 60 trillion as part of its capital expenditure (capex) budget this year to support the expansion. About Rp 20 trillion of the budget comes from bank loans.
It has obtained a committed loan facility from a syndication of banks, consisting of Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI) and Bank Central Asia (BCA).
“The amount of loan ready to be disbursed stands at Rp 7 trillion as of now,” Dewo said.
The rest of the capex budget comes from internal cash, including by funds generated from a bonds issuance. PLN is now looking to reap Rp 2.5 trillion and Rp 500 billion by selling bonds and Islamic bonds, respectively. The bonds issuance is scheduled to take place on July 1-2.
According to the company, the bonds will be issued in two segments.
The first series will mature after seven years and its coupon rate ranges from 7.25 percent to 8.25 percent. The second series will have a maturity period of 10 years and offers an interest rate between 7.45 percent and 8.45 percent.
Meanwhile, the Islamic bonds, also called sukuk, will mature after 7 years. Their coupon is set at around 7.25 percent to 8.25 percent.( Tassia Sipahutar and Amahl S. Azwar, The Jakarta Post)