Outspoken Djiteng replaced by Adhi as PLN president

JAKARTA (JP): State Minister for the Empowerment of State Enterprises Tanri Abeng formally reshuffled yesterday the board of directors of debt-ridden state electricity company PLN, including the removal of its outspoken president Djiteng Marsudi.

After several weeks of delay, Tanri installed Adhi Satriya, former director of PJB II, a PLN subsidiary for Java and Bali, to replace Djiteng in a closed ceremony held early in the morning at his office in the Jakarta Stock Exchange building.

"I was informed about my installment only yesterday afternoon by Pak Tanri's staff," Adhi said.

The ceremony was held at 8:30 a.m., one hour earlier than scheduled, apparently to avoid likelihood of protests from people opposed to Djiteng's removal. No protest occurred.

Announced early this month, the plan to replace Djiteng drew ire from PLN employees who charged his removal was due to his outspoken opposition to nepotism in awarding private power projects. Several legislators also opposed his replacement.

PLN has signed contracts with 26 independent power producers (IPPs), most of which are controlled by international power companies in partnership with former president Soeharto's family and associates.

Djiteng blamed the IPPs as one factor behind PLN's huge loss amid the monetary crisis. He had tried in vain to renegotiate with the IPPs on the U.S. dollar-denominated tariffs for their power since late last year.

He was lauded by proponents of reform for unilaterally annulling a power purchase contract with PT Cikarang Listrindo, which is controlled by Soeharto's cousin Sudwikatmono.

Djiteng repeatedly said he had been coerced to sign the contracts with the IPPs due to rampant influence peddling by those in power.

Some PLN employees had threatened to stop power supply to the public if the plan to replace Djiteng was realized.

In response, the head of PLN's distribution office for Jakarta and Tangerang, Tunggono, who was earlier tipped to replace Djiteng, asked the Jakarta chapter of the Coordinating Agency for National Stability and Security two weeks ago to take stern action if the threat was carried out.

It was earlier rumored that Djiteng would head the Committee for the Restructuring of PLN, but he said yesterday there was no confirmation from the ministry on the position.

"I can't say right now if I will accept the position or not, because I have not yet been informed about my job in that position."

Tanri also appointed Tunggono as PLN's director of operations, Parno Isworo as finance director, Eddy Suwondo as marketing and distribution director, Hardiv Situmeang as director of planning, and Azwani Sjech Umar as human resource and organization director. (jsk)