Indonesia's electricity firm to hold road show

Indonesia's stated-owned electricity company PT PLN will hold a road show in New York, Boston, Singapore, Hong Kong and London, in a bid to seek funds for financing 10,000-megawatt power plant projects, Minister of State Enterprises Sugiharto said recently.

The minister said that the company will issue global bonds during the road show.

"I have given a permit to the PLN to issue global bonds," he said.

The PT PLN needs about 10 billion US dollars funds for the projects, and the company will provide about 1.5 billion US dollars, the minister says.

Indonesia will build the power plant projects, 10 are located in Java island and 30 in other islands. The projects will be completed in 2009, according to Indonesian Coordinating Minister for Economy Boediono.

Indonesian Mines and Energy Minister Purnomo Yusgiantoro has said the government targeted to sign a contract with the bidders on October 20.

The projects aims at reducing government subsidies on the electricity sector and decrease the use of fuel oil with coal.

Indonesia has a huge supply of coal but its oil production has been declining due to aging of some oil wells and the slowing down of finding new wells.

Indonesia's power plants have a total capacity of 25,000 megawatts, but the demand grow by 6 to 7 percent or 2,000 to 3,000 megawatts annually, according to Purnomo.

The current capacity can not meet the request of the electricity consumption, Boediono says.