Utilities giant PLN to boost power output
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Capacity should rise 8.3% by year-end
In a bid to meet growing demand, Indonesian utilities firm PT Perusahaan Listrik Negara (PLN) will expand its power capacity by 8.3 per cent to reach 39,000 megawatts by year-end.
PLN planning and risk management director Murtaqi Syamsuddin said the capacity increase would be achieved once construction of power plants that will produce a combined 10,000 megawatts is completed.
The power plants’ construction is part of a fast-track program the state company launched in 2006.
The company is also working to expand its network, building 10 main stations in Java and transmission lines – connecting Meulaboh and Blangpidie in Aceh, Martapura and Muara Baru in south Kalimantan, Teluk Betung and Sungai Lilin in southern Sumatra, and Teluk Kuantan and Rengat in Riau. Each line stretches 40 to 50 kilometres.
PLN business division head Benny Marbun said electricity consumption nationwide last month alone reached 16.07 terawatt hours (TWh), rising by nearly 10 per cent compared to a year earlier.
“In total, electricity consumption in January-May this year grew 7.6 per cent compared to the same period in 2012,” he said in a statement recently.
Electricity consumption in the business sector also grew, as shown by data from PLN. In May, the growth rate reached 10 per cent, while a month before, the rate stood at 9 per cent.
With growing consumption, the company expects to book a 9 per cent increase in revenue to Rp 253.6 trillion (US$25.66 billion or Bt790 billion) this year.
PLN finance director Setio Anggoro Dewo said the net profit growth would be in line with that of revenue. 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 and a bonds issue. PLN is now looking to reap Rp 2.5 trillion and Rp 500 billion by selling bonds and Islamic bonds, respectively. The bonds issue is scheduled to take place on July 1-2.
The company said the bonds would be issued in two segments. The first series will mature after seven years and its coupon rate ranges from 7.25 to 8.25 per cent. The second series will have a maturity period of 10 years and offers an interest rate between 7.45 and 8.45 per cent.
Meanwhile, the Islamic bonds, also called sukuk, will mature after 7 years. Their coupon is set at around 7.25 to 8.25 per cent.
