Govt refuses to bail out PLN

Coordinating Minister of Economy Rizal Ramli said the government had refused to bail out the financially troubled state electricity company PLN.

Rizal told reporters that PLN had asked the government to take over Rp 21 trillion of its total Rp 43-trillion (US$=Rp9,200) short-term debt in order that it may survive, but the government turned down the request.

"State companies have the habit of making debt as much as possible, hoping that the government will take over the debt.

"But, the government will not bail them out," Rizal said. (Amoros)