Still waiting: Cash-strapped PLN but to get $3b from government
18 June, 2020
State-possessed electricity company PLN says it features yet to get compensation worth vast amounts of dollars from the federal government for offering capacity to customers below market prices.
PLN president director Zulkifli Zaini said on Wednesday that the utility provider was still waiting for the federal government to disburse the funds, which amounted to Rp 45 trillion (US$3.17 billion).
“They said it could be paid out this year,” the former banker told lawmakers throughout a House of Representatives (DPR) hearing in Jakarta on Wednesday.
The government owes Indonesia’s sole electricity distribution company for electricity subsidies incurred in the last two years. PLN is because of receive Rp 23 trillion for subsidies in 2018 and Rp 15 trillion for 2019.
Disbursing the compensation cash is particularly urgent for cash-strapped PLN while the company faces cashflow risks in the second quarter, due to a bill payment rest scheme introduced carrying out a recent fiasco.
Around 4.6 million residential customers of PLN reported a spike within their electricity bills in June amid the execution of the government’s working-from-home coverage introduced to support the coronavirus spread.
PLN also faces cash flow problems because of low electricity selling price ceilings and high ability plant expenditure. Furthermore, the company is offering discounts to 31 million of Indonesia’s poorest homes within its COVID-19 relief efforts.
The State-Owned Enterprises (SOEs) Ministry previously announced billions of dollars in compensation for big SOEs, including Rp 48.46 trillion for PLN. Other express companies, such as for example national flag carrier Garuda Indonesia and steelmaker Krakatau Metal, will receive functioning capital guarantees.
“The federal government has liabilities to SOEs that total Rp 108.48 trillion,” stated ministry spokesman Arya Sinulingga on June 5.
PLN booked a good net loss Rp 38.9 trillion in this year’s first quarter, down from a net profit of Rp 4.12 trillion in the same period last year, after the rupiah exchange amount fell to a record low against the greenback in March.
Source: www.thejakartapost.com