PLN sets up subsidiary to lease fiber optic

State electricity company PLN has set up a wholly-owned subsidiary called PT Indonesia Comnet to lease the company's power network, which contain fiber optics, for telecommunication purposes.

PLN's president Kuntoro Mangkusubroto confirmed on Tuesday the establishment of the new subsidiary, saying the new company was expected to generate revenues that will help alleviate PLN's current financial burdens.

"The company was set up three weeks ago," Kuntoro told Petromindo.Com on the sidelines of the meeting between Minister of Energy and Mineral Resources Purnomo Yusgiantoro and the House of Representatives' Commission VIII, which oversees among others mines and energy affairs.

According to Kuntoro, PLN's power cable network contains fiber optics, which can be used for data transmission.

PLN sources said the state company had run a test whether the power cable can be used for data transmission and the test showed positive results. (Lia KS)