PLN to issue bonds to fund power plant

State electricity firm PLN said on Thursday it plans to issue up to 900 billion rupiah ($99.61 million) in bonds to fund a 600 megawatt (MW) gas-fired power plant designed to help avert an energy crisis in 2004.

PT Perusahaan Listrik Negara (PLN) President director Eddie Widiono said the cash-strapped firm had few options to raise funds for the Jakarta-based plant which will supply power to densely populated Java island and the tourist island of Bali.

"We plan to issue up to 900 billion rupiah in bonds, possibly early next year," Widiono told reporters.

Last month, Indonesia Mines and Energy Minister Purnomo Yusgiantoro said the government would build the plant and had agreed to provide $500 million toward the project.

PLN's bottom line has been battered by the sharp fall in the rupiah since late 1997 when the Asian economic crisis hit Indonesia, as most of the utility's costs are dollar-denominated. Indonesia's annual power demand is currently estimated to be growing by around 10 percent, one of the most robust power markets in Southeast Asia.

PLN has said electricity capacity across the Java and Bali was around 18,000 MW in 2001 and the capacity would be unchanged in 2002.(*)