Maluku government owes PLN Rp 60b

M. Azis Tunny, The Jakarta Post/Ambon

Twenty-seven schools in Ambon were left in the dark recently after state electricity company PLN cut off their power over unpaid bills, and now it has emerged that the Maluku provincial administration may find itself in the same situation.

Claiming not to have the money to pay the estimated Rp 60 billion (US$6.6 million) it owes PLN, the Maluku administration has sent a letter to the minister of mines and energy in Jakarta requesting debt relief.

The secretary to the Maluku administration, Said Assagaf, said his office had discussed the matter during a recent gubernatorial working meeting with the financial minister, home affairs minister and the head of the National Development Planning Board.

At the meeting, the Maluku administration said it was unable to settle the bills because of limited funds. It also claimed the overdue bills were the result of electricity usage by refugees who have occupied public and government buildings since sectarian violence in the area broke out in 1999.

"The refugee problem is not only the responsibility of the local administration but also of the central government. Electricity use has increased because of the refugees," Said told The Jakarta Post.

He said his office had also conveyed the matter to the finance minister, requesting the overdue bills be erased.

In response, the National Development Planning Board suggested the Maluku administration make a request for funds from Special Presidential Instruction Fund No. 6/2003 on post-conflict rehabilitation in Maluku and North Maluku.

The head of the Ambon branch of the PLN, Suhud Setiabudi, confirmed the administration owed about Rp 60 billion. "Our ability to provide services and distribute power to customers has been interrupted due to this matter."

He also said the branch was suffering a deficit of more than Rp 9 billion a month because customers were paying far less than it cost to generate and distribute power.

"We hope customers prepare power generators so their activities are not interrupted during power stoppages. We also hope customers settle their bills as soon as possible," said Suhud.

Power was cut to 27 schools in Ambon that owed a total of Rp 375.4 million ($41,711) in unpaid electric bills dating back several years.