PLN to issue bonds worth Rp 900 billion next year

State owned electricity company PLN plans to issue bonds worth about Rp 900 billion (1$=Rp9,200) next year to finance the expansion of the company?s power grid networks, and to improve the capacity of the existing power plants, Kompas reported on Wednesday.

Jusuf Hamdani, a PLN senior official, said in Jakarta on Tuesday that without additional power supply it would be difficult for the state owned electricity company to meet the rising demand. "If it happens, then there will be an electricity crisis in 2005," he added.

PLN needs not only to raise the power supply but also to improve the quality of its power transmission networks. The low capacity of its power grid has often caused a major power blackout particularly in the Bali and Java power transmission networks.

In 2002 alone, power blackouts occurred for more than 126 times both due to problems in the transmission and power generation activities.

Jusuf said he was optimistic the bond which would offer high yields would be attractive enough both for local and foreign investors. (*)