TEMPO.CO, Jakarta - Finance Minister Sri Mulyani highlighted PLN`s declining performance due to the company`s liabilities and increasing debt interest. However, PLN director Sofyan Basir said their financial condition is still healthy; asserting that they are able to pay debt installments and complete the 35,000 MW project in time.
In an interview with Tempo last Wednesday, Sofyan said that PLN has the power to pay off its debts.
How does PLN respond to the Finance Minister's letter regarding the company's financial risks?
This is normal. Every year, the Finance Minister warns us—although usually she does it verbally. 'Be careful, don’t let your debt service requirement fall below 1.5' she would say. We have installments and interests that must be supported with a 1.5-time revenue. Banks also do that to their debtors. It's just that a lot of people don’t understand about this, so they make a fuss.
How strong is PLN in term of settling debts?
We have a ceiling of Rp30 trillion. We can pay our debts any time. We also have subsidies collectibles and receivables amounting to Rp12 trillion since 2015. This year, the bill could reach Rp51 trillion. Our total debt is Rp296 trillion. Until the next 30 years, it's Rp300 trillion. Debts can be extended too once it reached the maturity date. PLN is 'bonafide', our rating is exceptional, and we are guaranteed by the government. What are you afraid of?
Isn't the Minister also concerned about the low growth of electricity?
No. The growth had reached four percent. It was low during the Eid el Fitr because there was a 10-day holiday. The decline was huge, down to Rp6 trillion. But in June it rose again by some 14 percent. And now it has gone up again to above three percent.
Th Finance Minister also asks for an efficiency increase.
We have cut basic production cost from last year's Rp1,400 per kWh to Rp1,300 per kWh, and we didn’t raise our tariffs. This means there is efficiency.
There will be no tariff hike until the end of this year. Will that cause problem to PLN's debt installment payment?
It doesn’t affect our conditions. It declines a little, but we are not experiencing losses. We are still profiting.
The Finance Minister wants you to review the completion target for the mega power project investment.
The corporate decides that the only thing that needs adjusting in the 35,000 MW project is the completion timeline. There is no revision in the capacity. There is no reduction in PLN's portion (for constructing power plants).
KORAN TEMPO
