PLN jolted by big losses in 1998<\/p>\n
JAKARTA (JP): State-owned electricity company PT PLN saw its
\nlosses jump 15 fold in the year ending Dec. 31, 1998, mainly as a
\nresult of the increased cost of procuring electricity from
\nprivate contractors and soaring debt servicing costs.<\/p>\n
PLN president Adhi Satrya told a hearing with House Commission
\nV for industry, mining and trade on Tuesday night that PLN lost
\nRp 9.16 trillion (US$1.4 billion) in 1998, up from Rp 579 billion
\na year earlier. The data was provided in an audited report by the
\npublic accounting office of Hans Tuanakota & Mustofa.<\/p>\n
The loss was incurred despite a 26.15 percent increase in
\noperating revenues to Rp 14 trillion and a Rp 1.93 government
\nsubsidy.<\/p>\n
The fall was attributed largely to the plunging of the
\nrupiah's exchange rate during the year.<\/p>\n
PLN has a contractual obligation to purchase electricity from
\nIndependent Power Producers (IPP) in U.S. dollars, while its
\nsales were in rupiah. The company paid Rp 1.89 trillion to the
\nsuppliers in 1998, up from Rp 325 billion.<\/p>\n
PLN paid Rp 6.01 trillion in debt services, a 183 percent
\nincrease over the previous year of Rp 2.26 trillion.<\/p>\n
PLN's finances are currently being audited by internationally-
\nrenowned public accountants Arthur Anderson as part of the
\nInternational Monetary Fund (IMF) program to improve the
\nefficiency of state companies.<\/p>\n
Adhi said PLN was implementing four strategies for its
\nsurvival and restore its financial condition: giving priority to
\nquick-yielding projects, corporate restructuring, financial
\nrestructuring and renegotiating the terms of contracts with IPP.
\n(02)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pln-jolted-by-big-losses-in-1998-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}