Indonesia Power to launch IPO in 2005

State-owned electricity company PT Perusahaan Listrik Negara (PLN) president director Eddie Widiono Suwondo said his company will sell shares in two subsidiaries to the public through initial public offering (IPO), the Investor Daily Indonesia and the Bisnis Indonesia newspapers reported in their Tuesday edition.

The shares of PT Indonesia Power and PT Pembangunan Jawa-Bali -- both generate and distribute power -- will be sold as part of a plan to reorganize the holding company and make it more profitable, Eddie said.

PT Indonesia Power’s IPO will be launched in the second semester of 2005.

Eddie said the company has yet to appoint financial advisers for the IPO plan.

“There is no need to be in a hurry. All these need time to make preparations. We are still preparing the list,” Eddie said after a hearing with the House of Representatives on Monday in Jakarta.

PT Indonesia Power, the biggest subsidiary of PLN, has eight power plants on Java and Bali islands that generate 7,332 megawatts of electricity. And PT Pembangunan Jawa-Bali has six power plants across Java island with a total capacity of 6,492 megawatts.

The papers did not say when Pembangunan Bali would conduct its IPO.(*)