PLN board of directors presented the company's 2017 financial results on Wednesday (28/3) (photo: TIS)

JAKARTA (TheInsiderStories) PT Perusahaan Listrik Negara (PLN) is planning to raise up to Rp 60 trillion (US$4.38 billion) this year through bank loans and bonds issuance in local and international markets to finance its projects.

The state-owned power producer also looking coal mines to support its power plant supply. President Director Sofyan Basyir told TheInsiderStories on March 28, PLN in final stages to acquire one coal mines in the near time.

Finance Director Sarwono Sudarto explained, the company has set capital expenditure for an investment of Rp90 trillion this year, slightly higher than Rp89.5 trillion last year. The funds will be used to finance the company’s power plants and transmission projects, which are part of the government’s 35,000 megawatts (MW) power plant development project.

Based on the 35,000 power plant capacity program, 35 power plants with a capacity of 10,681 MW will be developed by PLN and 74 projects with a capacity of 25,904 MW will be developed independent power producers.

Just over half of the power plants will be generated by coal. PLN has projected that its coal need will continue to rise in the next few years from 92 million tons in 2019 to 126 million tons in 2020 and 121 million tons in 2021, or an average of 123 million tons per annum.

Basyir added, in order to secure the company’s coal need in the future, PLN is also in final talks to acquire coal producers, including one listed coal miner. He, however, declined to disclose the name of the targeted companies.

In addition to acquiring coal miners, PLN also mulls a plan to acquire gas producers. “We are confident about (efficiency) as long as the resources (coal and gas) are under control of the company,” Basyir said.

He added he expects efficiency will improve in line with an improvement of gas infrastructure in the country.

He said in addition to secure coal supply, the purpose the move is also to press down basic production costs in the long run.

Financial Performance

Meanwhile, in 2017, PLN booked net profit of Rp4.42 trillion, fell sharply by 45.7 per cent from Rp8.15 trillion in the previous year. The company said the sharp fall in net profit was mainly due to higher expenses, including costs to purchase coal to generate its power plants.

The Indonesian Coal Price slowly increased since the end of 2016 and reached its peak in December last year to around US$95 per ton. This raised PLN’s expenses as 58 per cent of the company’s power plants are generated by coal (coal-fired power plants).

Its expenses also by 8.3 per cent or Rp21.02 trillion to Rp275.47 trillion.

Its revenues reached Rp255.29 trillion last year, up 14.6 per cent from previous year. The rise was boosted by an increase of electricity sales, which was 7.1 TWh higher than in previous year.

Reported by Linda Silaen, edited by Roffie Kurniawan, email: