Government not yet decide debt-to-equity swap for PLN

The government-appointed electricity restructuring team, dubbed as the presidential decree 133/2000 team, has not even discussed the proposal from state electricity company PT Perusahaan Listrik Negara (PLN) to transfer its debt to the government into the government's equity in PLN.

Coordinating Minister for Economic Affairs Rizal Ramli said on Monday (Feb. 12) that the team would set the time to discuss the proposal, but he refused to give the date, as it had not yet been set.

"Not yet, not yet. We have not yet discussed the government capital participation policy to settle PLN's debt of about Rp 21 trillion," Rizal said after speaking at the Indonesia-Singapore Business Forum in Jakarta.

The debt is expected to soar to Rp 30 trillion this year from Rp 21 trillion in January 2000.

Rizal, who chairs the presidential decree 133/2000 team, said that he did not see any urgency for the government to take over PLN's obligations and transferred them into government's equity in the state electricity company, contending that PLN's finance was not in critical condition.

Meanwhile, Minister of Energy and Mineral Resources Purnomo Yusgiantoro, the team's deputy chairman, said that he could not predict what the team would decide for PLN. "That would be a collective decision of the presidential decree 133/2000 team." (*)