PLN to formally set up Bali subsidiary in December

State owned electricity company PT Perusahaan Listrik Negara (PLN) expects to be able to formally establish a subsidiary in Bali later next month following the successful operation of the company?s first subsidiary PLN Batam in Batam in 2010, Kontan reported on Monday.

PLN?s president director Nur Pamudji said in Jakarta last week that the state electricity company had worked together with the Bali provincial administration to prepare the establishment of the subsidiary because most of the activities of the new company including those related to the formulation of prices should follow the local regulations.

?Perhaps the inauguration for the establishment of the Bali subsidiary will be carried out in December,? he said, adding that the idea to set up the Bali subsidiary was inspired by the success of the company?s first subsidiary PLN Batam, which distributes electricity in Batam, and other islands in Riau islands province.

PLN Batam, which was established in 2010 as a separate business entity, managed to book net profits of up to Rp 100 billion as of October, this year. Pamudji said that the Bali subsidiary might be named PT PLN Bali.

In addition to the Bali subsidiary, PLN also plans another subsidiary in East Kalimantan under the name of PLN Tarakan, which take over the distribution task of PLN?s current branch in Tarakan. (*)