Indonesian Power waiting for govt's approval for IPO in 2001

PT Indonesian Power, or formerly PT Perusahaan Listrik Negara Pembangkitan Jawa Bali I (PLN PJB I), is currently waiting for the government's approval to offer shares to the public through an initial public offering (IPO) on stock markets, according to company president Fridaus Akmal.

Firdaus said that Indonesian Power - this name would become official name starting Oct. 3 - would continue with its preparation for an IPO of shares while waiting for the government's approval.

"The preparation includes efforts to review how much fund we are expecting to raise from the IPO, and what will the fund be used for. Also, how many percent of shares that should be offered to the public, but this will be decided by the government. But for sure, the government must retain its majority stake at PJB I," Firdaus said after attending a ceremony on the handover of ISO 9002 certificate from PT Sucofindo to Tambak Lorok (Semarang) power generation unit.

He did not rule out that the proceeds to be raised from the share offering would be used to finance new investment in power generation. "Now, the government is facing difficulties in finding loans for investment. So, we have to find our own ways."

Nevertheless, Firdaus said that his company would not invest blindly, but would consider the market demand so that there would be no more power glut in the future.

He noted that his company targeted to supply about one third of all electricity demands in Java and Bali. (*)