PLN wants to retain 50 percent of its net profit

PLN needs fund to finance expansion building more power plants and transmission systems, its president Nur Pamudji said.

Jakarta (ANTARA News) - State electricity company PT PLN asks the government to allow it to retain 50 percent of its 2012`s net profit.

PLN needs fund to finance expansion building more power plants and transmission systems, its president Nur Pamudji said here on Friday.

The decision, however, is in the hand of the shareholders, the government, Pamudji said

He said PLN will report its financial performance for this year in a shareholder meeting this month.

Earlier, head of human resources and planning bureau of the state enterprises ministry Imam Apriyanto Putro said a decline in PLN profit could substantially result in a decline in the total payment of dividend to the government.

After state oil and gas company PT Pertamina, PLN is the biggest contributor to government earning in dividend among state companies.

"We propose a cut in the dividend paid to the government as PLN`s net profit drops sharply this year," Pamudji said.

This year, PLN hopes to chalk up only Rp12 trillion in profit.

In the first nine months of the year, the net profit of PLN shrank 90.84 percent to Rp865.092 billion from Rp9.452 trillion in the same period last year .

"Therefore, our estimate puts PLN`s proft only at Rp1 trillion this year," he said.(*)

Editor: Heru Purwanto
Copyright © ANTARA 2012