PLN needs $16b to boost power capacity

PT Perusahaan Listrik Negara (PLN) said it needs $16 billion over the next 10 years for 20,000 megawatts of additional power capacity to help avoid shortages, Bloomberg reported Tuesday.

More than half the investment is likely to come from foreign investors, Eddie Widiono, president director, said at an energy conference in Jakarta. The utility can raise $10 billion itself while the government can provide about $4 billion, he said.

"We badly need foreign investors to help us build these power plants," Widiono said. "From our side, we have been trying to raise money by selling bonds."

PLN is building plants to prevent power shortages as demand for electricity in Indonesia is expected to outstrip supply by 2005. The country needs to build at least 47 power plants and 14 high-voltage transmission lines across the country to meet demand in the next 10 years, PLN has said.

Widiono and other executives will meet officials from Japan's Ministry of Economy, Trade and Industry tomorrow to discuss possible Japanese investment. Most of new power plants will be built in Java, Sumatra and eastern Indonesia. (*)