Fri, 12 Jun 1998

Team to tackle PLN problems

JAKARTA (JP): The government has formed a team to give recommendations on ways resolve problems faced by state-owned electricity firm PLN, including those with independent power producers (IPPs).

The team is headed by a deputy to state minister for the empowerment of state enterprises, Markus Permadi, assisted by the director of electricity at the Ministry of Mines and Energy, Endro Utomo Notodisuryo.

Markus and Endro told journalists yesterday evening that the team had four sections covering finance, operation, privatization and cooperation with private electricity firms.

"We will complete our assessments in two months and give recommendations on how to settle all those problems, including those on finance and contracts with IPPs," Endro said.

PLN president Djiteng Marsudi annulled last week its power purchase contract with Cikarang Listrindo, an IPP owned by former president Soeharto's cousin Sudwikatmono.

Djiteng's move received wide support from the public, including several legislators, but was opposed by State Minister for the Empowerment of State Enterprises Tanri Abeng. (jsk/rid)