Perusahaan Listrik Negara (SOE)
Perusahaan Listrik Negara (PLN) is an Indonesian state-owned company tasked with supplying the electricity needs of the Indonesian people. Total capacity of PLN’s power plants at end-2013 had grown to 46.104 MW. The company holds a monopoly on the distribution of electricity in Indonesia and it is the second-largest state company by assets. The State of the Republic of Indonesia owns 100 percent of PLN's shares. However, the company does issue series of corporate bonds, sukuk (Islamic bonds) and global bonds. Indonesia's electrification ratio - the percentage of Indonesian households that are connected to the nation's electricity grid - stood at 80.38 percent at end-2013.
Profile
| Industry Sector | Utilities |
| Industry Sub Sector | Electricity |
| Established | 1 January 1965 |
| Listed | Not Listed |
| Major Shareholders (>5%) | Government of Indonesia (100%) |
| Key Subsidiaries | Indonesia Power Pembangkitan Jawa Bali Indonesia Comnets Plus Pelayanan Listrik Nasional Batam Prima Layanan Nasional Enjiniring |
Business Summary
In 1945, Indonesia's President Soekarno established the Electricity and Gas Bureau, under the Department of Public Works and Energy with a total power generation capacity of 157.5 MW. In 1961, the Electricity and Gas Bureau was renamed BPU-PLN (Board of General Administration of the State Electricity Company) working in the fields of electricity supply, gas and coke. Four years later, the BPU-PLN was disbanded and two state-owned enterprises were inaugurated, i.e. Perusahaan Listrik Negara (PLN) to manage electric power and Perusahaan Gas Negara (PGN) to manage the country's natural gas transportation and distribution.
Perusahaan Listrik Negara’s fields of business are:
1. Provision of electrical power covering:
• Generation of electricity
• Supply of electricity
• Distribution of electricity
• Planning and constructing facilities to supply electrical power
• Development of electricity supply
• Sales of electricity
2. Electricity support covering:
• Electricity consultation
• Construction and installation of electrical power equipment
• Assessment and testing of electrical power equipment
• Operation and maintenance of electrical power equipment
• Laboratory of electrical power equipment and consumer testing
• Certification of electrical power equipment and consumer
• Certification of electricity technician competence
3. Other activities covering:
• Managing utilization of natural resources and other energy sources in the interests of electrical power
• Operating and dispatching services for generation, supply, distribution and retail sales of electrical power.
• Industrial activity related to electrical power hardware and software and other equipment related to electrical power
• Cooperation with other parties and institutions related to electrical power in the fields of development, operations, telecommunications and other information related to electrical power
• Electricity services
Furthermore, PLN’s fields of business also cover:
a. Planning and development activities of electric power facilities (generation, transmission and distribution) and supporting activities of budgeting, business development, organization development and human resources.
b. Development activities covering construction of power generating facilities, transmission and substations.
c. Corporate/operational activities of power plants, comprising steam power plant (PLTU), hydro power plant (PLTA), gas turbine power plants (PLTG), geothermal power plant (PLTP), diesel power plant (PLTD), solar cell power plant (PLTS) and wind power plant (PLTB). PLN also purchases electrical power produced by private power plants.
d. Research and supporting activities related to electricity.
All of the above services are conducted by PLN through its 46 business units distributed across Indonesia.
Perusahaan Listrik Negara's Financial Highlights:
| 2016 | 2017 | |
| Revenues | 222,822 | 255,295 |
| - Sale of Electricity | 214,140 | 246,587 |
| - Government Subsidy | 58,043 | 45,738 |
| Net Income | 8,113 | 4,410 |
| Operating Profit |
26,415 | 25,559 |
| Income before Tax | 13,578 | 8,544 |
| Total Assets | 1,272,178 | 1,334,957 |
| Total Liabilities | 393,778 | 465,540 |
| Basic Earnings per Share¹ |
150,009 | 50,541 |
in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
Source: Perusahaan Listrik Negara, Annual Report 2017
Perusahaan Listrik Negara's Financial Highlights:
| 2011 | 2012 | 2013 | 2014 | 2015 | |
| Revenues | 208,018 | 232,656 | 160,639 | 193,418 | 217,347 |
| - Sale of Electricity | 112,845 | 126,722 | 153,486 | 186,634 | 209,845 |
| - Government Subsidy | 93,178 | 103,331 | 101,208 | 99,303 | 56,553 |
| Net Income | 5,426 | 3,208 | (29,567) | 14,004 | 6,011 |
| Operating Profit |
22,378 | 29,541 | 29,206 | 27,410 | 48,325 |
| Income before Tax | 5,515 | 1,032 | (11,037) | 18,948 | (15,913) |
| Total Assets | 467,783 | 549,376 | 523,652 | 539,521 | 1,314,370 |
| Total Liabilities | 321,770 | 390,106 | 349,427 | 352,348 | 509,580 |
| Basic Earnings per Share¹ |
117.594 | 69.451 | (182.213) | 302.807 | 130.106 |
in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
Source: Perusahaan Listrik Negara, Annual Report 2017
The government of Indonesia aims to build more coal-fired power plants in order to increase the electrification rate and to reduce the consumption of expensive diesel (used in power plants). PLN has been tasked by the government to supply an additional 55,500 MW of power nationwide by 2019 and increasing the electrification ratio to 90 percent by 2020.
As PLN lacks the means to build a sufficient amount of power plants by itself to meet Indonesia's electricity demand, the government opened opportunities (starting from 1994) for the private sector to participate in the nation's electricity supply business. These independent power producers are obliged to sell electricity to PLN as the latter has a monopoly on electricity distribution in Indonesia.