JAKARTA (TheInsiderStories) - The Supreme Audit Agency (BPK) has found inefficiencies of the state electric company PT Perusahaan Listrik Negara (PLN), especially related to fast track program 10.000 megawatt (MW), which has caused the company to have lost Rp5.65 trillion in the mid-term development plan of 2006-2015.
According to Presidential Decree (Perpres) No. 71 of 2006 which was amended by the Perpres No. 193 of 2014, PLN was assigned to build the power plants in 37 locations throughout Indonesia with the capacity of 9.935 MW — in which 10 locations on the Java Island with installed capacity of 7,490 MW and 27 locations outside Java Island with 2,445 MW installed capacity.
“In PLN, BPK discovered 26 findings with 65 issues. All of PLN inefficiencies have cost the company worth Rp5.65 trillion,” BPK Chairman Harry Azhar Azis said on Thursday (Apr 6).
BPK argues that the inefficiencies were coming from inadequate planning of the 10,000 MW Fast Track program by PLN. Therefore, PLN must provide additional funds to cover the unexpectedly expenditures. One example was the delayed completion of the power plant project in Adipala, Central Java, which has prompted PLN to provide additional funds worth $137.56 million and Rp555.97 billion.
Another case was also found in Rembang power plant, which prompted PLN to inject additional fund.
In addition, BPK also found that at least five power plant projects completion was interrupted, namely Tanjung Balai Karimun Power Plant, Ambon Power Plant, Lombok 2 Power Plant, West Kalimantan Unit 1 and 2 power plant. Total inefficiency costs of those power plants were $78.69 million and Rp609.54 billion respectively.
“Therefore, the capital expenditure of PLN to build power plant does not provide benefits anything in accordance with the expectation,” he added.
BPK also mentioned that PLN did not impose fines for the delayed completion of the twelve projects completion to contractors worth Rp704.87 billion and $102.26 million. PLN also suffered inefficies costs of Rp871.75 billion and $8.68 million related to using of diesel for Lombok 2 power plant, relocation of jetty to around 8 kilometer, which caused additional coal transport costs, and the cancellation of Sewa Kariangau project in East Kalimantan.
BPK insisted called on PLN to improve the electricity procurement business plan (RUPTL) for 2011-2020 as well as performance of human resources, including the PLN board of director to comply with applicable rules.
The House of Representative (DPR) Deputy Speaker Taufik Kurniawan said the House accepts the BPK report and willl be discussed by the certain commissions. In addition, BPK has agreed to be present in the discussion at the commission level. (RF)