Electricity subsidy fund stranded in Bank Mandiri: Legislator
Wednesday, February 14 2001 - 04:30 AM WIB
The government's electricity subsidy fund of Rp 3.9 trillion (US$=Rp9,600) for 2000 budget year has been disbursed by Bank Indonesia, the central bank, to state electricity company PT Perusahaan Listrik Negara (PLN) through state Bank Mandiri, but the fund was still withheld by Bank Mandiri, according to a legislator.
Legislator Ramson Siagian from the Indonesian Democratic Party of Struggle faction at the House of Representatives' Commission VIII on energy and mining said that PLN should have got the fund much earlier as based on the state budget law, the fund could be withdrawn at the end of the state budget year.
"Four days ago, I checked through my instruments and found out that the subsidy fund totaling Rp 3.9 trillion was still "squatting" in Bank Mandiri," Ramson said on Tuesday (Feb. 13).
Earlier, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that the subsidy fund was still held by Bank Indonesia.
Ramson called on all parties concerned to quickly disburse the fund to PLN as the state electricity company was badly in need of cash to finance its operation. He suspected that the withholding of fund was made deliberate by certain parties who wanted to rock PLN.
Ramson explained that PLN's finance was in dire straits, moreover with the withholding of the subsidy fund. To tackle financing problem, PLN plans to increase basic electricity tariffs by an average of 2 percent per month. And this would affect the people, who are struggling with lives in crisis.
"Although the plan (to increase electricity tariffs) has not been realized and not yet approved by the House, if the subsidy fund is disbursed, at least PLN could postpone its plan to increase the electricity tariffs by an average of 2 percent per month," he said.
He demanded that Minister Purnomo explain why the subsidy had not yet been disbursed to PLN. "Why has the subsidy not yet materialized, and why was the fund placed in Bank Mandiri."
To get clarification from all parties concerned, Ramson said that the Commission VIII would summons Bank Mandiri president for a closed-door meeting, to get background information on the withholding of the subsidy fund. (*)