Kertas Leces sells excess power to PLN

PT Kertas Leces, one of the country?s oldest paper producers, has agreed to sell the company?s excess power to state electricity company PT Perusahaan Listrik Negara (PLN) in a bid to further increase the company?s earnings, Koran Tempo reported on Monday.

Budi Kusmarwoto, the President Director of the state owned paper producer, said Kertas Leces would sell electricity to PLN under two stages. In the first stage, Kertas Leces will sell 5 megawatt at a price of Rp 656 per kWh. In the second stage, the company will sell additional 10 MW in 2014.

In order to meet the sale target, the paper company would spend up to Rp 13 billion in new investment to expand distribution networks and upgrade the transformer and turbine capacity.

Haryanto, the General Manager of PLN for East Java distribution said that the power to be bought from Kertas Leces would be relatively cheaper because the price of electricity from other companies is higher than Rp 656 per kWh. (*)