Worker Repair Power Plant Tower - Photo: Special
JAKARTA (TheInsiderStories) – Indonesia’ power producer, PT Perusahaan Listrik Negara (PLN) plans to set aside Rp90 trillion (US$6.26 billion) for investment in 2019, with the most investment for the 35 Gigawatt project, said the senior executive on Friday (01/11).
According to the Finance Director Sarwono Sudarto, the funds would be obtained from the company’s equity and from third parties. This year, he said, the state-owned company opened to re-issue local bonds or other instrument.
Last year, PLN has issued global bonds worth $1.5 billion. In this year, the government planned to inject capital for state-owned power producer PLN Rp6.5 trillion.
To secure the raw materials for its power plants, this year, the producer also has plans to acquire a coal mine, said the CEO, Sofyan Basir. In the future, PLN is targeting 30 to 40 percent of its source coal supply from the company’ itself. He did not deny, the national electricity producer would need huge funds to realize this plan.

In the third quarter (3Q) of this year, PLN recorded a fantastic loss Rp18.4 trillion due to the exchange rate loss which reached Rp17.3 trillion. In the 3Q of last year the company was still able to print a net profit of Rp3.05 trillion.

Actually PLN’s revenue is still growing positively, rose 6.97 percent to Rp200.9 trillion from last year Rp187.8 trillion. But the foreign exchange loss and higher operating expenses making the company recorded huge losses.

Sudarto did not provide a clear reason why the company’s exchange rate loss could be that large. He only promised to maintain the financial condition of the company and try to maintain the growth of electricity consumption.

In the same period, the state-owned company recorded operating costs Rp224 trillion, whereas the same period of last year were only Rp200 trillion. The increased operating expenses were due to the increase in fuel and lubricant costs which were originally Rp85 trillion in the 3Q of last year to Rp101.8 trillion in this year.

Meanwhile, PLN’s Director for Corporate Planning, Syofvie Rukman added that the electricity consumption growth in 3Q only grew above six percent, far from the target set in the 2017-2018 plan grow 8.3 percent. She did not specify why consumption growth could not reach the target.

This consumption growth, said her, will be very closely related to the shift in the Commissioning Operating Development schedule of the 35 GW power plant project. She said, if the consumption did not grow well then this would certainly affect PLN’s ability to develop a power plant project.

US$1: Rp14,500

Written by Staff Editor, Email: theinsiderstories@gmail.com

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