PLN faces problem to finance maintenance of power generation units
Thursday, February 1 2001 - 04:30 AM WIB
The state-owned oil and gas company PLN will have difficulties to finance the maintenance of its power generating units this year because the government had not allocated the 2000 Rp 3.9 trillion (US$1=Rp 9,400) electricity subsidy fund, according to company operation director Tunggono.
Tunggono said that the company could not rely only from the sale of its power to finance its maintenance program.
"Because there's no subsidy, the maintenance of PLN power generating units could be affected," he told press on the sidelines of a seminar in Surabaya on Wednesday.
He added that PLN would start checking the power generating units in the middle of this year.
PLN needs government subsidy because the company sells its power at tariff lower than the production cost. But the central government has delayed the disbursement of last year's subsidy.(R. Amoros)