Baihaki says importing fuel could trouble PLN

State electricity firm PLN can import fuel for its power plants, but it should consider whether it can afford to pay import taxes, Suara Pembaruan daily reported Monday.

?I think PLN should be careful with its plan. It should take into account fuel import taxes that it will have to pay,? the paper quoted as saying president director of state oil and gas firm Baihaki Hakim.

The ministry of finance was studying fuel import tax rates, Baihaki said over the weekend.

Meanwhile, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said Monday PLN was legally allowed to import fuels. The company was not obliged to buy fuels only from Pertamina, the minister added.

Last week, PLN and Concord Energy Ptd. Ltd. Singapore signed a memorandum of understanding to jointly conduct a study so as to determine whether it will be economically viable for PLN to import fuels.

Suara Pembaruan said PLN needed a total of eight million kiloliters of fuel in 2003, of which 6.1 million kiloliters would come from Pertamina. (*)