PLN under fire for cooperation<\/p>\n
JAKARTA (JP): The state electricity company PT PLN was under
\nfire yesterday over its dealing with private investors involving
\npower generation, which has caused high prices of electricity for
\nsubscribers and PLN.<\/p>\n
A member of the Commission VI of the House of Representatives,
\nIskandar Mandji, said in a hearing with PLN executives that PLN
\nis also not transparent in setting criteria for companies which
\nmay be awarded contracts for the establishment of power
\ngenerating plants.<\/p>\n
He said PLN's decision to allow private producers of
\nelectricity to set electricity rates at levels higher than those
\nset by PLN will affect electricity subscribers.<\/p>\n
PLN has allowed PT Cikarang Listrindo to set billing rates at
\nlevels higher than PLN's rates for its customers during peak
\nhours at industrial estates in Bekasi, West Java.<\/p>\n
PLN also agreed to buy electricity from PT Paiton Energy
\nCompany, a private consortium which is now constructing a 1,230-
\nmegawatt (MW) coal-fired power plant in Paiton, East Java, at Rp
\n183 (8.3 U.S. cents) per kilowatt hour (kWh), much higher than
\nPLN's average generation cost of Rp 114.18 in Java.<\/p>\n
Mandji also said the House of Representatives had received
\ncomplaints from private companies over the absence of clear
\ncriteria on which bidders can be awarded contracts with PLN.<\/p>\n
In response to the criticisms, PLN's president Djiteng Marsudi
\nsaid that contract decisions and the pricing of electricity are
\nboth under the authority of the government.<\/p>\n
He acknowledged, however, that the pricing was set on the
\nbasis of brief studies made by PLN and its contractors.<\/p>\n
He hopes the government will provide criteria for companies
\nbidding for contracts with PLN in the coming years.<\/p>\n
Bonds<\/p>\n
Djiteng also said PLN has scaled down its plan of offering
\nbonds to the public from the original value of Rp 1 trillion to
\nonly Rp 500 billion due to weak demand from investors.<\/p>\n
PLN's director of finance, Muslim Abuhudjus, told reporters
\nduring a break at yesterday's hearing that according to the
\nunderwriter of the bond issuance, PT Danareksa Sekuritas -- the
\nstate-owned investment trust company -- demand for PLN's bonds
\nhad reached only around Rp 275 billion.<\/p>\n
PLN said last week that the company had for the second time
\ndelayed its plan to offer five-year bonds worth Rp 1 trillion on
\nthe over-the-counter (parallel) market.<\/p>\n
Muslim said PLN will probably offer the bonds on March 26
\nthrough April 6 on the parallel bourse.<\/p>\n
PLN will use funds from the bond issuance to finance various
\npower projects in the country. (fhp)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pln-under-fire-for-cooperation-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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