P

T PLN, currently exercising rotating blackouts in part of the country to manage electricity problems, is about to post hefty net profits this year.

Having long sunk in losses, PLN expects to return with a bang with full-year profits estimated to reach a handsome Rp 7.2 trillion (US$760 million), president director Fahmi Mochtar said Thursday.

The figure is a stark contrast to the Rp 12.3 trillion and Rp 6 trillion losses in 2008 and 2007 respectively.

Fahmi said as of June this year, the company had posted Rp 6.25 trillion in net profits.

Among the contributing factors was the government's decision to award the company a 5 percent margin in the distribution of electricity where the fare was subsidized by the state budget.

Fahmi said the margin was expected to increase operating profits to Rp 14 trillion by the year-end. By comparison, the company posted Rp 3.6 trillion in operating losses.

He said another factor was its efficiency programs such as converting fuel to natural gas to fire its power plants. Its steam-fired power plants were also working well without much weather disturbance unlike previous years.

According to Fahmi, between 2009 and 2015, PLN would need at least Rp 80 trillion per year for investment to meet rising power demand.

"Today, only 65 percent of Indonesia has electricity," he said. "We are trying to increase more power to areas lacking electricity access such as in regions of Papua and West Nusa Tenggara."

By 2014, PLN aims to boost electricity circulation to at least 80 percent of the country.

Since1998, Indonesia has experienced an electricity crisis because PLN's power capacity cannot meet the ever-increasing demand for electricity, causing power deficits and frequent blackouts across the country.

The condition is better in Jakarta than many other regions. However, the capital also experiences problems, such as the explosion of PLN's largest electricity substations, Cawang Baru, on Sept. 29, when fire razed two output transformers.

Fahmi said the Cawang Baru substation would be fully restored by Dec. 19 at the latest.

"The restoration is progressing well," he said. "Now there are no longer blackouts in Jakarta.

"By Dec. 29, Jakarta will have more electricity, although the supply is not enough *to meet the demand*."

Currently the government is working on the 10,000 megawatt electricity crash program to help speed up resolve electricity shortage in the country.

In 2009, PLN expects to produce 136,000 gigawatt-hours of electricity, 6.6 percent higher than the 127,600 gigawatt-hours produced in 2008.