SOEs Ministry Plans To Dissolve PLN's Coal Subsidiary



Mahinda Arkyasa

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  • TEMPO.CO, Jakarta - State-owned Enterprises (SOEs) Ministry representative said the SOEs Minister Erick Thohir is considering dissolving PT PLN Batubara, which is a subsidiary of the state-owned electricity company responsible for PLN's coal supply. 

    "It is true, we are studying the technicality of the dissolving," SOE Ministry special staff Arya Sinulingga said on Friday, January 14, 2022, in a voice recording to journalists. "We still need to calculate the technicality aspect, assets that we are dealing with, as these need time and process," he added in the recording.

    According to Arya, this option can be considered as the ministry's attempt to improve SOEs efficiency, an effort which the ministry had actively carried out as they have dissolved SOEs subsidiaries that are not profitable or ineffective.

    The dissolving of PLN Batubara is hoped to simplify the supply chain within PLN as they were initially tasked to purchase coal from suppliers but have done nothing more but obstruct PLN's business process. 

    Should PLN Batubara be dissolved, coal providers will be able to directly supply commodities to PLN. This move comes after the Coordinating Minister of Maritime Affairs and Investment Luhut Binsar Pandjaitan feels PLN should no longer purchase coal from traders.