Indonesia's Power Co PLN may not need subsidy in 2001
Wednesday, January 3 2001 - 04:00 AM WIB
Energy and Mineral Resources Minister Purnomo Yusgiantoro said the government may withhold subsidy for state-owned electric utility PLN next year.
Purnomo said the government has set aside Rp3.9 trillion in subsidy ready to be disbursed for PLN, which earlier reported big losses.
PLN President Kuntoro Mangkusubroto said earlier losses had reduced the company's capital to minus Rp2.6 trillion.
Purnomo said according to a provisional examination by the government's financial watchdog, PLN still had a cash flow surplus until the end of this year. He did not give any figure.
If the BPK's finding is correct, PLN will not need the subsidy, he said.(*)