‘Indonesian Power’ Proposed to be State-Owned Company
Friday, 15 September, 2006 | 15:38 WIB

Tempo Interactive, Jakarta: PT Indonesia Power is proposed to be a state-owned company and no longer to be the subsidiary of PT PLN (Persero). It is aimed at cutting bureaucratic ties and making it easy to acquire investment funds.

Nursyirwan, the Generator Expert at PT Indonesian Power, has said that the separation facilitates development of the company. The reason is that in addition to having a strong bargaining position, the company will have bargaining power at the same level as PLN. “Decision-making will not be controlled by PLN as well,” he said yesterday (14/9) in Jakarta.

In the Draft Bill on Electric Power which will be proposed to the House of Representatives (DPR), it is said that PLN will be the only holder of electric-power business authority. It will enable a new state-owned electric power company to be established.

However, the Managing Director of PT Indonesia Power Abomanyu Santoso did not agree if the company is directly below the government. “It should remain below PLN but is made public by share offerings,” he said.

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