Reducing dependency on oil will be the priority for state power firm PT PLN's new board of directors, president director Fahmi Mochtar told reporters in Jakarta on Monday.

Fahmi, who was appointed to replace Eddie Widiono Suwondho, announced an ambitious plan for shaving some Rp 10 trillion from the amount the government shells out in electricity subsidies, this year Rp 42.6 trillion (about US$4.6 billion).

To achieve the goal, he said, the company would have to see through behind-schedule construction of coal-powered generators expected to bring 10,000 more megawatts to the grid.

In addition, for other generators, a push for switching from oil to gas would have to go forward.

Fahmi said speeding up gas supply to generators could see oil consumption used in power generation drop to 9 million kiloliters from the current 10 million figure.

He added that PLN would continue its energy conservation education programs for the public.

"We'll continue campaigning on the wise use of energy issue, including the incentives and disincentives for the general public."

A reshuffle within the firm, including several new deputy director posts, would be completed this month, the new chief added.

Backing Fahmi, who was formerly PLN's acting director for generation and primary energy, will be deputy president director Rudiantara, formerly deputy president director at state-owned cement producer PT Semen Gresik.

Other changes to the board made Monday included appointment of M. Agung Nugroho as director for strategic construction, Bambang Praptono as director for planning and technology, and Setio Anggoro Dewo as finance director.

The government also decided to create a new seat for Java, Madura and Bali operations -- to be filled by Murtaqi Syamsudin -- and for non-Java, Madura and Bali operations -- to be filled by Hariadi Sadono.

Speaking to reporters the same day, State Minister for State Enterprises Sofyan A. Djalil said he didn't have any specific directives for the new board other than faster completion of the 10,000 megawatt coal-power initiative.

"That's why we appointed a new director of strategic construction to specifically supervise the (coal-power) projects," Sofyan said.

He also said appointing new directors for Java, Madura and Bali operations, as well as non-Java, Madura and Bali, would help the firm respond better to local problems.

"We need the new positions because around 80 percent of the company's business is in these regions."

In the future, Sofyan said, the firm would likely implement a regional tariff system as each region had different power demand characteristics.

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