PLN suffers Rp 15t loss in first-half<\/p>\n
JAKARTA (JP): State electricity company PT PLN suffered a net
\nloss of Rp 14.99 trillion (US$1.3 billion) for the first half of
\nthis year compared to a net profit of Rp 720 billion in the same
\nperiod of 1997.<\/p>\n
The company's consolidated financial statement for the period
\nfrom January to June this year shows a foreign exchange loss of
\nRp 12.84 trillion, much higher than the Rp 85.56 billion loss
\nreported in the first half of 1997.<\/p>\n
The 1998 half-yearly financial results were based on a rupiah
\nexchange rate of Rp 14,975 to the dollar, while the 1997 results
\nwere based on an exchange rate of Rp 2,474 to the dollar.<\/p>\n
Net sales were placed at Rp 6.46 trillion for the first six
\nmonths of this year, up 25 percent on the Rp 5.17 trillion
\nrecorded in the same period last year, the company announced
\nSaturday.<\/p>\n
Operating costs soared to Rp 7.3 trillion in the first half of
\nthis year, from Rp 4 trillion in the same period of 1997.<\/p>\n
The company said its debts totaled Rp 49.8 trillion during the
\nfirst half of this year, of which Rp 12.4 trillion was held in
\nthe form of short-term loans.<\/p>\n
The monetary crisis has severely affected PLN because it
\nreceives its earnings in rupiah but pays most of its operating
\ncosts in U.S. dollars. Its operating costs include the purchase
\nof fuel, power supplied by Independent Power Producers (IPPs) and
\nspare parts for its transmission network and generating plants.<\/p>\n
PLN has projected that it will need to spend $590 million on
\nbuying gas and another $400 million buying power from IPPs in the
\ncurrent fiscal year which ends in March 1999.<\/p>\n
It also expects to spend $79 million on the purchase of
\ngeothermal steam from contractors to the state oil and gas
\ncompany Pertamina, $288 million to purchase spare parts and
\nanother $103 million servicing its debts.<\/p>\n
The company has projected a loss of Rp 11 trillion in the
\n1998\/1999 fiscal year assuming no power price increases and an
\naverage exchange rate of Rp 6,000 to the dollar.<\/p>\n
The loss will increase by Rp 1 billion for every Rp 1,000 by
\nwhich the rupiah's actual U.S. dollar exchange rate exceeds the
\nrate assumed in the forecast.<\/p>\n
The government, aware of the company's problems, announced a
\n20 percent increase in power prices in May and planned follow up
\nincreases of 18 percent in August and 20 percent in November.<\/p>\n
But the government later annulled the May price increase for
\ndomestic consumption following a public outcry and delayed the
\nprice increase planned for August.<\/p>\n
PLN has tried to renegotiate the price at which contractors
\nsupply power and gas prices to improve its financial performance,
\nbut its efforts thus far have brought no results.<\/p>\n
Minister of Mines and Energy Kuntoro Mangkusubroto has said
\nPresident B.J. Habibie will issue a decree assigning Coordinating
\nMinister for Development Supervision and Administrative Reforms
\nHartarto to negotiations with IPPs and gas contractors later this
\nweek. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pln-suffers-rp-15t-loss-in-first-half-1447893297",
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