Economist Suspects PLN Cash Flow Issues Triggered Power Outages

An economist has stated that the government shares responsibility for recent power outages, linking the blackouts to financial imbalances within the state-owned electricity company PT PLN (Persero). Nailul Huda, Director of Economics at the Center of Economic and Law Studies (CELIOS), said PLN bears a heavy burden from compensation and subsidy mechanisms both upstream and downstream.

At the upstream level, Huda noted that PLN’s coal purchasing practices often become a burden because the company is required to buy at specific prices. Meanwhile, at the downstream level, PLN must initially cover electricity usage compensation payments. “So the burden on PLN is very heavy in carrying out government assignments,” Huda said when contacted in Jakarta on Monday (22/6/2026).

Furthermore, Huda pointed out that government compensation payments are not settled immediately. He said PLN’s financial performance has declined sharply, affecting the company’s cash flow. “I suspect the power outages were also influenced by PLN’s poor cash flow,” he revealed.

Huda also urged a thorough investigation into the matter. He called for scrutiny of the capacity and supply of coal, which is the primary energy source for PLN’s power plants. “Whether there was any manipulation in coal stocks that prevented supply from reaching the plants must also be investigated,” he said.