PLN cancels plan to offer Rp 900 billion bond

State owned electricity company PLN has cancelled its plan to issue bonds worth up to Rp 900 billion this year and would instead use its internal funds to finance expansion plan, Koran Tempo reported on Thursday.

Jarman, an assistant of the State Minister for Supervision of State Enterprises, confirmed on Wednesday that PLN had formally informed his office that it had cancelled its plan to issue the Rp 900 billion bond.

Muhammad Ihsan, an independent commissioner of PLN, said that the cancellation was made three months ago because the board of directors considered that the company still had enough funds to finance its activities.

PLN earlier announced that it would issue bonds to raise funds worth up to Rp 900 billion to finance its plan to take over Sarulla geothermal power plant from Unocal and to finance gas power plant in Bekasi.

Analysts said that the planned bonds received a cool welcome from the investing public due to the unfavorable condition of PLN's performance. (*)