PGN to allocate 50% of net profit as dividend

State owned gas distribution company PT Perusahaan Gas Negara (PGN) will allocate 50 percent of its net profit in 2003 as dividend in accordance with the company's promise made before the initial public offering (IPO) last year, Bisnis Indonesia reported on Thursday.

"The dividend will be about 50 percent of the net profit. But the final decision will be made during the company's upcoming general elections," PGN's president director W.M.P. Simanjuntak said.

He said 2003 net profit rose by 20 percent from that in 2002. In 2004, the company's net profit is projected to increase by 15 percent.

Simanjuntak said that he was optimistic that the 15 percent increase in the profit in 2004 could be achieved because a number of gas transmission projects would start operation during the year.

The new gas transmission projects will include the gas pipeline, which will transmit gas from Grissik in South Sumatra to Duri in Riau and Singapore would start operation this year, he said.

According to him, there are six key areas which will be passed by the company's gas pipelines including Batam, Pekanbaru, Jambi, Palembang and Lampung . (*)