New PLN president may resort to court in settling power tussle

New PLN president Eddie Widiono may resort to the court in a bid to settle its problem with the independent power producers.

"There are many options that can be implemented to settle the problem with independent power producers (IPPs), and one of them is to bring the case to the court. But for now, we're not moving toward that direction," Eddie told Petromindo.com.

Eddie was installed on Wednesday as the new president of the state-owned power company, replacing Kuntoro Mangkusubroto.

The ailing PLN is trying to renegotiate its power purchase contract with some IPPs. The company signed few years ago to purchase power from 27 IPPs in U.S. dollar rate, but as the economic and currency crisis started in the middle of 1997, the company could not fulfill the contract. There has also been allegations that the contract was made based on corrupt and nepotism practices.

Kuntoro had managed to renegotiate four private power contracts.

Eddie also said that he was not planning to propose to the government for a change in the composition of the private power negotiation team.(R. Amoros)