PLN to spend up to 40 percent of its budget for network expansion

In order to further improve its service and network coverage, state-owned electricity company PLN should spend at least 40 percent of its budget for network expansion, the company's president director Eddie Widiono said as reported by Neraca daily on Sunday.

"At present, we spend only about 15 percent of the budget for network expansion. In the future, the spending for network expansion should be at least 40 percent of the budget," Eddie was quoted as saying.

He said that PLN had allocated about Rp 3.6 trillion this year to build and expand distribution networks. "The amount should be much higher in the future in line with our plan to boost investment in the power transmission system," he added.

According to him, one of the major network expansion project would include the development of a power grid across the Sunda Strait to link the power distribution network in Java and in Sumatra.

The project which would cost about US$100 million to build would be carried out beginning in 2007. "The inter-island power grid will help cope with the power shortage in Sumatra," he added. (*)