PLN allocates Rp120t for capex for this year

By Nova Farida

State-owned electricity firm PT PLN has allocated around Rp 120 trillion for capital expenditure (capex) this year, mostly to be used for financing power plant, distribution and transmission projects.

?Capex this year is around Rp 120 trillion, most of which to be used for developing power plants and transmission,? PLN Finance Director Sarwono Sudarto said on Wednesday, but did not provide comparative figure for last year.

He said that PLN will need huge of funds this year as it would start implementing many of the projects planned and prepared in the past two years. ?Now (this year) is the execution phase,? he said.

Sarwono said that the capex will be financed via internal funds and bank loans. He added that the company has yet to decide whether it would issue bonds, but it would be one option if the company needs greater amount of funds.

Editing by Reiner Simanjuntak