PLN`S OPERATIONS PROFIT ONLY RP600 BILLION

Jakarta, Dec 30 (ANTARA) - State-owned power company PT PLN said its operations profit in 2008 reached only Rp600 billion, down from Rp2 trillion in 2007.

The company's president director, Fahmi Mochtar, said here on Tuesday the drop in the operations profit was caused by the high price of fuels for power plants particularly oil and coal, in 2008.

"In 2009 we expect our operations profit to reach around Rp1.5 trillion," he said.

He, however, declined to tell about the company's net profit or loss in 2008 or in 2009.

He said in 2009 the cost of fuels is predicted to drop following the presence of new coal-fired power plants and a reduction in electricity consumption as the result of current global crisis.

He said at least another three power plants would operate in 2009 as part of the 10,000 MW power plant project crash program. They are coal-fired power plants PLTU Labuan in Banten, PLTU Rembang in Central Java and PLTU Indramaju in West Java.

Fahmi could not tell PLN's projection of fuel oil consumption in 2009. "The drop in the fuel cost will also lower the government's electricity subsidy," he said.

He said the value of the drop in the electricity subsidy would depend upon the oil price in 2009.

Fahmi said this year's power subsidy reached Rp60.39 trillion, less than the projected Rp61.01.

In 2008 fuel oil consumption reached 11 million tons or above the target set at only eight million kiloliters.