PLN remains healthy despite its massive loss: BPK

The financial condition of the state owned electricity company PLN remains sound and healthy despite the company’s massive net loss of about Rp 2.02 trillion in 2004, according to the state audit agency BPK.

According BPK’s audit, as reported by Kompas on Monday, with total sales reaching Rp 62.3 trillion, up 14 percent from those in the previous year, PLN managed to book pre-tax profit of about Rp 1.45 trillion in 2004, far exceeding its target of about Rp 56.4 billion.

However, with total operating costs of about Rp 65.9 trillion, and tax payment of about Rp 3.1 trillion and the loss of about Rp 281.6 billion due to the damages caused by natural disaster in the country, particularly the tsunami in Aceh during the year, PLN suffered a net loss of Rp 2.02 trillion, BPK said in its audit report published early last week.

In its report, BPK however said that PLN remains financially sound despite the massive loss.

PLN’s balance sheet has been in the red since 2001 despite the company’s massive consolidation measure. In 2003, the financial loss reached Rp 5.9 trillion, slightly down from Rp 6.31 trillion in 2002, but much larger than Rp 317.09 billion booked by the company in 2001. (*)