Electricity sales grew 19.7 percent to IDR 85.7 trillion, while the government’s electricity subsidies climbed 31.8 percent to IDR 57.7 trillion. However, the government intends to reduce its massive energy subsidies (fuel and electricity) and therefore has raised prices of electricity for industries and households gradually. In 2014, electricity prices will rise 34.7 percent for industries and 34 percent for households. Total electricity subsidy to PLN will decline to IDR 86.84 trillion from IDR 95.35 trillion that was set in the 2014 Revised State Budget. As the company has been selling electricity at tariffs below the cost of production (ordered by the government), PLN is heavily dependent on government subsidies.

PLN is a fully state-owned company and therefore does not trade shares on the Indonesia Stock Exchange (IDX) but it does issue series of corporate bonds, sukuk (Islamic bonds) and global bonds. The company provides electricity to about 55.74 million households across the vast archipelago. PLN needs to add 4,000 megawatts of capacity to meet annual rising electricity demand.

Indonesian demand for electricity grows by approximately 8.4 percent per year, which is higher than the annual growth of electricity generation, thus resulting in frequent blackouts or a total lack of electricity (in the more remote areas). Even a big city such as Medan (North Sumatra) still experiences about three blackouts per week on average. About 20 percent of the total Indonesian population (250 million people) had no access to the country’s electricity grid in 2013.

PLN believes that the nation's electricity demand will rise to 207 terawatt-hours (TWh) in 2014 from 189 TWh in 2013. By 2022, the figure will rise to 386 TWh (nearly doubling from the current figure).

PLN’s Current Debt: IDR 250 trillion
PLN’s Capex 2014: IDR 57.5 trillion

Visit the company profile of Perusahaan Listrik Negara

Perusahaan Listrik Negara's Financial Highlights:

       2010      2011      2012      2013
Revenues    162,375    208,018    232,656    257,405
 - Sale of Electricity    102,974    112,845    126,722    153,486
 - Government Subsidy     58,108     93,178    103,331    101,208
Net Income     10,347      5,426      3,208    (29,567)
Operating Profit
    20,683     22,378     29,541     36,493
Income before Tax     11,753      5,515      1,032    (39,221)
Total Assets    406,100    467,783    549,376    595,877
Total Liabilities    263,987    321,770    390,106    462,646
Basic Earnings per Share¹     69.451    117.594     69,451   (639,947)

in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
Source: Perusahaan Listrik Negara, Annual Report 2013