PLN raises investment budget by 46% this year

State owned electricity company Perusahaan Listrik Negara (PLN) has increased its investment budget by 46 percent to Rp 15.3 trillion this year from Rp 10.5 trillion in 2003, Investors reported on Tuesday.

The firm also aims to reduce electricity supply losses by 12 percent this year from 15 percent in 2003, the paper quoted the firm's director for transmission and distribution Herman Darnel Ibrahim as saying.

Heman said in Jakarta last week that the larger part of the investment budget or about Rp 7.7 trillion would be allocated for power generation. The distribution division would receive Rp 7.7 trillion, while transmission division and supporting department will each receive Rp 2.9 trillion and Rp 1.2 trillion.

?The high increase takes place in the distribution sector which rises by 76 percent,? he said.

Reducing the power supply losses to 12 percent this year has been included in PLN?s corporate plan for 2004.

Herman said that a failure to reduce the losses would affect the company?s profit target because each percentage of the supply losses would result in an increase in overhead cost by Rp 350 billion and the loss of potential income of Rp 600 billion. (*)