PLN cancels plan to spin off subsidiaries IP, PJB

State electricity firm PT Perusahaan Listrik Negara (PLN) said on Tuesday that the government had cancelled the plan to spin off its subsidiaries PT Indonesia Power (IP), PT Pembangkitan Jawa Bali (PJB) and Icon+

PLN's President Director Eddie Widiono said the cancellation of the spin-off plan was stated in a letter sent by State Minister for State Enterprises Sofyan Djalil to the board of directors of PLN on Jan. 25.

"In the letter, the minister informed that the separation of subsidiaries had been cancelled and they could continue to operate as subsidiaries of PLN," he said.

The plan to spin off IP, PJB and Icon+ was approved during PLN's recent shareholders meeting. Under the plan, all the three subsidiaries will respectively operate as an independent company.

The plan was, however, strongly opposed by PLN's employees, who threatened to go on strike, if the company pressed ahead with its spin-off plan. (godang)