PLN's arrears to Pertamina swell to Rp 6 trillion

PLN's arrears to state owned oil and gas company Pertamina has swelled to about Rp 6 trillion as of November, this year due to the delay in disbursement of the fuel subsidy for the state owned electricity company, Kompas reported on Saturday.

Of the total arrears, about Rp 2 trillion incurred during the period between January and March, this year and the other Rp 4 trillion during the period between October and November.

The government agreed to provide subsidy of about Rp 12 trillion to PLN for 2005. About Rp 4 trillion of the total subsidies allocation was approved in early 2005, and another Rp 8 trillion were approved in the following months. At the same time, the government limited the subsidized diesel oil for PLN to 8.35 million kiloliters. It means that PLN should buy the remainders of its diesel oil needs of about 11.44 kilo liters at market price.

The subsidy calculation is confusing due to an increase in the price of diesel oil in early 2005.PLN has claimed it has the rights to get subsidy of up to Rp 15 trillion. This figure is based on the diesel oil price of Rp 2,220 per litter, a half of the current price.

PLN's president director Eddie Widiono admitted that the government's subsidy for the company's fuel purchases had not be disbursed. But Pertamina said that the debts should be paid even though there was a delay in the disbursement of the subsidy.

Pertamina's finance director Alfred Rohimone had made it clear that PLN should settle its arrears on Dec. 18 at the latest. "If PLN does not settle the arrear payment, its fuel supply will be cut down," he said. (*)