Govt agencies argue on PLN liquidity cure

JAKARTA (JP): The government yesterday dismissed a suggestion that the state electricity firm, PT PLN, should sell its 800- megawatt coal-fired power station at Paiton, East Java.

Director General of State Enterprises Bacelius Ruru told the House of Representatives' Budgetary Commission that PLN should conduct an in-depth study of its finances before selling any assets.

"As far as I am aware there is no such study yet, and we -- the government as the shareholder -- have no plan to do that (sell the power station)," Ruru said.

Director General for Electricity Zuhal, who is also PLN's chief commissioner, suggested earlier that PLN sell its power station at Paiton to improve its liquidity.

Zuhal said PLN could also sell shares to the public, acquire more equity funds from the government or raise electricity tariffs to increase its liquidity.

But, he said, the sale of PLN's power station was the best and quickest way to get funds.

PLN's Paiton power station has two units, each with an installed capacity of 400 MW. It is the first power plant to open at Paiton, which is being developed as a huge electricity center.

Ruru dismissed Zuhal's suggestion, arguing that even PLN's management was against the idea.

But Ruru did not say how PLN could solve its liquidity problems. (rid)