Govt to pay PLN's debts to Pertamina: Sugiharto
Thursday, December 14 2006 - 02:24 AM WIB
The government should step in and take the responsibility to settle state-owned electricity firm PT Perusahaan Listrik Negara's (PLN) debts amounting to Rp 22 trillion to state oil and gas Pertamina in order not to place financial burden on the two state-owned companies, State Minister for State Enterprises Sugiharto has said.
"I think PLN, Pertamina and the minister of finance should sit together and discuss how to settle PLN's debts. The debts can be settled through an offset mechanism," Sugiharto was quoted as saying by Investor Daily.
In the case of PLN's debts, the ministry of finance should find out the right options to settle the debts because it would be difficult for PLN to pay the debts with its own funds.
According to the minister, PLN's debts to Pertamina are normal because the company needed to secure adequate supply of fuel in order to maintain the operation of its power plants. (*)