PLN to establish new subsidiaries, forms geothermal unit

State-owned electricity company PLN plans to establish seven new subsidiaries to operate at least 35 power plants currently being built under its fast track power program.

Bambang Praptono, PLN?s Director of Planning said in Jakarta on Tuesday that the new subsidiaries included PLN Pembangkitan Indramayu, PLN Pembangkitan Lontar, PLN Pembangkitan Sumetara I, PLN Pembangkitan Sumatera II, PLN Pembangkitan Kalimantan and Nusa Tenggara, and PLN Pembangkitan Sulawesi, Muluku and Papua.

?Each new business unit will operate power plants in one particular area. PLN Pembangkitan Lontar will for example operate Teluk Naga coal-fired power plant and Pelabuhan Ratu coal-fired power plant,? he said.

PLN currently builds 35 new coal-fired power plants under the first stage of the fast track program. In the second stage of the fast track program which is now under preparation, PLN will build 99 power plants, but most of them will be offered to independent power producers. PLN expects to provide additional power supply of 10,000 megawatt in each stage of its fast track program.

Bambang said that the new subsidiaries would be later allowed to transfer the management and operation of their power plants to PLN?s main subsidiary PT Indonesia Power and PT Pembangkitan Jawa Bali (PJB)or to private companies.

In the long term, the new subsidiaries will also be given an option to sell their power plants to private companies to raise funds for the construction of new power plants to be built under the fast track program, he said.

Meanwhile, PLN's President Director Fahmi Mochtar said during a hearing with the House of Representatives' Commission VII which oversees energy affairs that the firm had also formed a subsidiary PT PLN Geothermal, which would be focused on goethermal power development. (bernard)