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tate-owned electricity firm PT PLN reported a significant net profit increase in the first six months of the year, thanks to growing power sales and foreign exchange gains.

According to its financial report, PLN booked Rp 12.34 trillion (US$1.05 billion) in net profit during the January to June period, increasing by almost twofold compared to Rp 4.77 trillion in the same period last year.

'€œThis is because [electricity] consumption increases as the number of our customers increases. There is no other electricity company that has 54 million customers,'€ PLN president director Nur Pamudji told reporters on the sidelines of an event on Monday.

The state company reaped Rp 85.7 trillion from electricity sales during the first half of the year, an increase of nearly 20 percent from the same period last year.

PLN sold 95.6 terrawatt hours (TWh) of electricity nationwide during the January to June period, a 6.71 percent increase compared to the same period in 2013.

PLN'€™s financial report also shows that the company enjoyed Rp 4.44 trillion in foreign exchange gains during the first half, which helped its net profit surpass its revenue.

The financial report also shows that PLN received Rp 57.73 trillion in subsidy from the government in the first half of the year, increasing from Rp 43.8 trillion in the same period last year.

The electricity subsidy has been seen as a major burden to the state budget, prompting the government to cut subsidies in several sectors this year.

In May, the government imposed a bimonthly increase on two big industry groups. The I3 group '€” companies using more than 200 Kilovolt ampere (kVA) that are listed on the stock exchange '€” will see electricity prices rise by a total 38.9 percent by year-end. Meanwhile, the I4 group '€” which use 30,000 kVA '€” will bear a 64.7 percent increase by year-end.

The government in July increased electricity rates for six customer groups, including individual users and industry players. The increases range from 5 to 11 percent every two months until the end of the year. This increase was estimated to save Rp 8.51 trillion of the state budget.

The rate increases would likely affect the growth of power sales this year, PLN commercial division head Benny Marbun said earlier.

The January to June sales growth of 6.71 percent is lower compared to the 7.17 percent increase during the January to June period in 2013 versus the same period in the previous year.

The company is targeting to sell 198.5 TWh in electricity by year-end, or around a 7 percent increase compared to last year.

PLN is also trying to reduce its oil fuel consumption and use more other sources, such as gas and coal, as part of attempts to push down spending on the expensive fossil fuel.

The company is targeting to use 431 trillion British thermal unit (TBtu) of gas this year, higher than last year'€™s usage of 390 TBtu, according to the company'€™s oil and gas division head, Suryadi Mardjoeki. It will likely surpass the target as first semester gas usage has reached 221 TBtu.

'€œWe are optimistic about gas usage yet worried about coal usage. We hope that the operation of Pangkalan Susu power plant helps us absorb more coal and reduce the usage of oil fuel, particularly in Sumatra.'€ Suryadi said.