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4 March 2004 - State-owned electricity company PLN said it will save around Rp10.7tn ($1.27bn) in production cost when three power plants being built come on line in 2005 and 2006.

PLN is building a steam power plants in Cilacap in Central Java and a steam and gas power plant in Cilegon in Banten and a steam power plant in Tanjung Jati in Central Java.

PLN President Eddie Widiono said yesterday the Cilacap and Cilegon power plants are scheduled to be linked to the Java-Bali interconnection system in 2005 to be followed with the Tanjung Jati power plant next year.

Eddie said the fund saved through efficiency will be used for new investment.

He said failure in putting the Cilegon plant into operation in 2005 could trigger crisis in power supply in Java as by that year installed reserve of the Java-Bali interconnection systems will fall to below 25 per cent.

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