PLN, Pelindo To Form Joint Venture

Jakarta (Antara Bali) - Two state-owned companies --power firm PLN and port operator PT Pelindo II-- will form a joint venture which will supply electricity with the needed authorized capital amounting to Rp600 billion, a PLN director said.

"The subscribed and paid in capitals of the joint venture will amount to Rp150 billion, or about 25 percent of the authorized capital," Risk Management and Planning Director of PLN Murtaqi Syamsuddin said in a press statement here on Tuesday.

He said that about 45 percent of the stake in the joint venture would belong to PLN while the remaining 55 percent would be owned by Pelindo II.

On order to manage the joint venture firm, PLN and Pelindo have agreed to set up a board of directors, which is composed of a president director, a finance director, a human resources director and a director for operation and commercial affairs.

PLN will assign its subsidiary PT Haleyora Power to carry out  the establishment of the joint venture, which is expected to begin commercial operation next month.

President Director of Pelindo II R.J. Lino said the joint venture was expected to help reduce operational cost and to increase the company's income.(*/T007)