PLN?s investments to be audited

The investments made by the state-owned electricity company PT Perusahaan Listrik Negara (PLN) will be audited, says the Koran Tempo newspaper in its Saturday edition.

Director general for energy utility and electricity Yogo Pratomo said the audit is needed to explore ways to cut the PLN?s operational charges and make the company more efficient.

From this audit, it will be certainly known the total expenditure of PLN this year. If any investment can be postponed, the expenditure can be reduced. And this will reduce the government subsidy in terms of the percentage of the electricity charges to be increased.

As per the PLN?s 2006 work plan, an amount of Rp 30 trillion was allocated for the electricity infrastructure investment. PLN?s cash flow permits only Rp 17.5 trillion and the government allocated Rp 17 trillion from the State Budget.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said the audit can reduce the amount of total investments. With the audit we can also cut the deficit of PLN?s operational costs and the government subsidy amount.

?Therefore, the electricity price hike will be the smallest possible (percentage),? Purnomo said. (*)