Influence Policy and Fitness State Electricity Company (PLN) Investment Business Generation

Aminullah Assagaf

International Journal of Empirical Finance, 2014, vol. 3, issue 5, 234-242

Abstract: The purpose of writing this article is to describe the effect of the acquisition of financial imbalance between the IPP and PLN benefits and there are opportunities opportunity income or cost savings that have accrued PLN to push subsidy burden and strengthen financial performance, marginal cost pricing. The method of analysis used in the writing of this article is to approach the time value of money, and the marginal cost pricing theory. The results of the data analysis is the power plant investment capital structure consists of 30 % equity and 70 % owner of bank financing. Grace period of 3 years during construction of the project , PLN Wisdom on power purchase rates were higher in the early stages of the IPP is helpful in solving their financial obligations , and providing significant financial benefits , especially after the debt is paid off . , PLN to obtain financial benefits a relatively small than getting an IPP , but PLN obtain social benefits in the form of the image of the company , PLN has the opportunity to optimize the income opportunity or cost savings , especially against the new contract period to come , PLN can optimize the potential income opportunity or cost savings through improvement of the model calculations , the purchase price policy changes and establishment of schemes that generate financial benefit balance of the parties.

Keywords: Capital budgeting; cost of service; prcing policy (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (1)

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