Government to pay PLN debts: Minister
Friday, October 20 2000 - 02:00 AM WIB
The government has agreed to pay the debts of the nearly bankrupt State Electricity Company (PLN). The agreement fulfills a formal PLN request for debt relief to the government.
The Minister of Energy and Mineral Resources, Purnomo Yusgiantoro, made these comments before attending a restricted cabinet meeting held at the Bina Graha Presidential Office in Jakarta today, October 19.
According to the Minister, Presidential Decree 133/2000 authorizes the government to form a PLN debt restructure team.
The Coordinating Minister for the Economy, Rizal Ramli, will lead the team that will include The Ministers of Finance, The Minister of Foreign Affairs, The Minister of Energy and Mineral Resources, and The National Planning Board (Bappenas) Chief.
The almost bankrupt PLN owes a staggering US$133.5 billion in operational debts to the private electricity company. The increasing value of the US dollar to the rupiah has further burdened PLN debt repayment plans. (*)