Indonesia Power appoints consultant for IPO

PT Indonesia Power (IP), a subsidiary of state-owned electricity company PT Perusahaan Listrik Negara (PLN), has appointed Credit Suisse First Boston (CSFB) as a consultant to prepare its initial public offering (IPO).

IP will hold a general shareholders meeting this year to ask approval for the IPO, Bisnis Indonesia reported Saturday.

IP?s President Director Tony Agus Mulyantono said in Jakarta Friday that CSFB was expected to help find the right time for the IPO and the amount of funds that the company would collect from it.

According to Tony, IP operates power plants with a combined capacity of 9,000 Megawatt (MW). The capacity was targeted to increase to around 3,000 MW by the end of 2009 or early 2010, he said.

PLN initially scheduled the IPO for February 2007. Through the IPO, the firm expected to raise Rp 5 trillion in funds from a sale of between 5 and 10 percent shares in IP.

PLN's management however cancelled the plan. PLN?s then President Director Eddie Widiono said last year that the IPO plan would be go ahead once the project to provide additional power supply of 10,000 MW under the government?s fast track program has been completed. (*)