PLN president Kuntoro rumored to be replaced

The president of state electricity company PT Perusahaan Listrik Negara (PLN), Kuntoro Mangkusubroto, is rumored to be replaced in the next two days or by the end of this week at the latest, Kompas reported on Wednesday.

When asked about the news, Kontoro only said: "No comment." But he noted that he would not resign from PLN because of its financial difficulties.

Earlier this year, rumors about the firing of Kuntoro from PLN were also circulated. At that time, Kuntoro was rumored to be replaced by PLN director for marketing and distribution, Eddie Widiono. Kontoro at that time said that he was ready to be kicked out of PLN, but Eddie refused to confirm the rumors.

The source at PLN told Kompas on Tuesday (March 6) that Kuntoro had been summoned by a presidential spokesman who informed Kuntoro about the planned replacement.

"Because a number of ministers bring with them different names, the President decided to appoint Eddie Widiono to replace Kuntoro," the source said.

The replacement of Kuntoro was said to be related to his persistent refusal to compromise against a number of project tenders at PLN. He was also criticized for the slow negotiation with the Overseas Private Investment Corporation, a U.S. government-controlled insurance agency that covers U.S. investment overseas.

But Kuntoro maintained that the issues of private electricity, including the dispute with OPIC, had been taken over by the government and the problems had become a "government-to-government issues between the Indonesian and U.S. government.

"PLN is part of the Indonesian government that has been assigned to conduct negotiations. The final decision lies with the government," he contended. (*)