PLN's debts will reach $8.8 billion this year

JAKARTA (JP): The state-owned electricity company PLN estimates that its foreign and local short-term and long-term debts will reach Rp 26.4 trillion (US$8.8 billion) by the end of the year.

The company's director of finance, Muslim Abuhujus, told a hearing of House of Representatives Commission V for energy that the figures were based on a rate of Rp 3,000 for a U.S. dollar.

Muslim said PLN had to pay Rp 1.04 trillion for this year's payment of the loan principal and about Rp 2.33 trillion in interest.

He said the rupiah's sharp depreciation against the U.S. dollar had affected the company's financial structure.

The company's power plant required imported components and PLN had started buying power in dollars from private power companies, he said.

The two private suppliers have connected to the PLN power grid for the combined cycle Sengkang power plant in South Sulawesi and the Salak geothermal power plant in West Java.

The company's financial reports reveal the company estimated that this year's profits would be Rp 301 billion.

Muslim said PLN's operating costs would increase to Rp 13.8 trillion next year from Rp 11.2 trillion this year.

But the company's revenue would increase to Rp 12.5 trillion next year from Rp 11.5 trillion this year.

Despite the increase in revenue, PLN would suffer an estimated Rp 1.3 trillion loss next year due to the increase in operating costs following the rupiah depreciation.

Company president Djiteng Marsudi said during the hearing that PLN had asked the government for permission to raise power prices as a countermeasure.

Minister of Mines and Energy I.B. Sudjana has indicated that the government would turn down the request because a tariff increase would burden the people.

Djiteng said PLN had also requested that the government, through the Directorate General of Electricity and Energy Development, reschedule its local and foreign loans. The government has yet to reply.

Customers owe PLN Rp 91.7 billion or about 1.1 percent of its total revenue this year, he said. (jsk)