PLN records Rp 3.7 trillion losses in H1

Financially troubled state electricity company PT PLN recorded Rp 3.736 trillion of losses in the first half of the year

The firm did not provided a comparative figure for the corresponding period of last year, but it said its losses amounted to Rp 5.908 trillion throughout last year. In 2002, it losses reached Rp 6.314 trillion, a sharp increase from Rp 317 billion in the previous year.

PLN recorded an operating profit of Rp 1.334 trillion in the first half of the year, but it fell into red due to the payment of loan costs and foreign exchange losses. Interest payment reached Rp 2.362 trillion, while foreign exchange losses amounted to Rp 1.677 trillion in the period.

Sales reached Rp 29.948 trillion in the first half of the year, compared with Rp 54.431 trillion throughout last year.

The firm received Rp 1.177 in subsidies from the government in the first half of the year, compared to total subsidies of Rp 4.097 trillion throughout last year.

A profitable company until the financial crisis in 1997, PLN has continued receiving subsidies from the government since 1998 to ease its huge financial burdens as a result of the sharp depreciation of the rupiah against the dollar. The firm sells its power in the rupiah, but pays most of its costs, including power supplies from independent power producers, in the dollar. (Godang)