PLN expected to lose at least $421m next year
PLN expected to lose at least $421m next year
JAKARTA (JP): State-owned electricity company PT PLN projected
yesterday that it could lose at least Rp 1.5 trillion (US$421.3
million) next year due to the rupiah's depreciation against the
U.S. dollar.
PLN president Djiteng Marsudi said on the sideline of the
national electricity day celebration at PLN's headquarters that
the company was burdened by the depreciation as it had to pay
most of its debt in U.S. dollars, while earnings were in rupiah.
Besides, Djiteng said, PLN would have to bear additional costs
with a possible increase in gas and diesel fuel prices, which PLN
had to pay in dollars as well.
"Actual losses could be higher than Rp 1.5 trillion, since it
was calculated using a rate of Rp 3,000 to the dollar," Djiteng
said.
The rupiah has lost 32 percent of its value, at Rp 3,550 to
the dollar yesterday from Rp 2,431 on July 1, amid a monetary
crisis besetting the Southeast Asian region.
Djiteng did not specify the total amount of PLN's foreign
debt, but Minister of Mines and Energy I.B. Sudjana said during
the ceremony that foreign loans made up most of PLN's total
loans.
Sudjana's written report submitted to the House of
Representatives last January said PLN's borrowing from local and
foreign financiers reached Rp 17.48 trillion in fiscal year
1995/1996.
Sudjana further said in last month's hearing that PLN had
planned to borrow another Rp 6.4 trillion this calender year, Rp
1.8 trillion of which had been disbursed in the first seven
months.
Sudjana said in January that PLN had earned Rp 325.4 billion
in 1995/1996, and the company was projected to earn Rp 849.4
billion in 1996/1997.
Efficiency
Sudjana said yesterday that measures to be taken by the
government to help PLN solve its financial problems included
helping it access more customers.
He said the government would limit the development of captive
power by industrial estate developers to provide PLN a chance to
penetrate the industrial sector.
"The development of captive power should be limited because it
isn't efficient. Also by using diesel as an energy source, they
enjoy most of the government fuel subsidies," Sudjana said.
However, Sudjana said PLN had to improve its efficiency and
service to attract manufacturing companies in industrial estates.
PLN data shows there are 9,000 megawatts (MW) of captive power
plants in Indonesia, mostly owned by industrial and commercial
enterprises, compared with PLN's power capacity of 15,940 MW.
Djiteng said as part of the company's efficiency program, PLN
would prefer revamping its outdated machinery over scrapping it
for newer technology.
In case the company had to buy new machinery and equipment,
the company would prioritize those made by local manufacturers
over imported ones, he added. (jsk)