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Jakarta Post

PLN to issue US$1.5 billion in global bonds this year

  • News Desk

    The Jakarta Post

Jakarta   /   Wed, March 6, 2019   /   09:03 am
PLN to issue US$1.5 billion in global bonds this year A PLN technician checks electricity meters at a subsidized apartment building in Daan Mogot, West Jakarta. (JP/Bangkit Jaya Putra)

State-owned electricity company PLN plans to issue global bonds worth US$1.5 billion in an effort to accelerate electrification and the development of more power plants.

“We plan to realize the plan in middle of this year,” said PLN finance director Sarwono Sudarto in Jakarta on Monday as quoted by kontan.co.id.

He said the proceeds from the global bond issuance would be used to finance the 35,000 gigawatt electricity program, which was launched by President Joko “Jokowi” Widodo shortly after he took office, as well as to expand the transmission of electricity.

Energy and Mineral Resources Ministry Electricity Director General Andy N Sommeng said that as of December 2018, from the 35,000 MW program, 2,899 MW was now in commercial operation. Projects that will generate a further 18,207 MW are still under construction.

Sarwono said he was not ready to reveal details of the plan, including the exact date of the bond issuance.

He added that PLN’s performance last year was “moderately good” although production costs had increased because of the rupiah’s weakening exchange rate. He added that PLN still recorded a profit last year, but declined to disclose the figure.

“We are still waiting for the audit result,” he added. (bbn)