PLN hands over five new power plants to Indonesia Power

State-owned electricity company PT Perusahaan Listrik Negara (PLN) has agreed with the request of its subsidiary PT Indonesia Power to take over the operation of five coal-fired power plants as the compensation for the company's debts to its subsidiary, Media Indonesia reported on Saturday.

PLN's president director Eddy Widiono said that the agreement to hand over the operation of the five power plants to Indonesia Power was reached during PLN's recent shareholders meeting.

The five coal-fired power plants include PLTU Suralaya Baru (1 x 600 MW), PLTU Labuhan ( 2 x 300 MW), PLTU Teluk Naga (3 x 315 MW), PLTU Pelabuhan Ratu (3 x 350 MW) and PLTU Indramayu (3 x 300 MW).

The five power plants are currently under preparation for construction as part of the government's program to provide additional power supply by about 10,000 megawatt in three years until 2010. All the five power plants are expected to begin operation between 2009 and 2010.

Indonesia Power has claims totaling about Rp 18 trillion to PLN. The claims are part of the arrears of the payment for Indonesia Power's electricity supply to PLN.

Indonesia Power has been entrusted to handle the operation of power plants formerly owned by PLN in Java and Bali as part of the state-owned electricity company's restructuring program. PLN, in turn, handles only the distribution of the power supply from its subsidiary. (*)