REPUBLIKA.CO.ID, JAKARTA - PT PLN Batam, a subsidiary of the state electricity company PT PLN, decided to put off its plan to launch initial public offering (IPO) on decline in financial performance.  The IPO was originally to be launched toward the end of this year but realization had to be delayed until the first half of 2013, PLN Batam president Dadan Koernadipura said. 

The company, located on the Batam island just south of Singapore, suffered a setback in financial performance in the first half of the year as a result of damage in one of its power generators, Dadan said here on Thursday. The damage resulted in sharp fall in the company`s net profit to 24 billion IDR in the first half of 2012 from 70 billion IDR in the same period last year. 

"The shareholders asked to delay the IPO plan because of the poor performance in the first half of the year," Dadan said.

The planned IPO valuation was to be based on the financial report of the first half of the year. He said the damage has been fixed and the power generator has operated normally, adding, the company has even operated a new power generator to keep pace with growing demand for power in Batam.