PLN?s loans from state budget have not been disbursed

The government has allocated Rp 7.5 trillion (US$8,975) in the 2010 state budget to help state electricity company PT Perusahaan Listrik Negara's (PLN) (Persero) finance the expansion of its electricity networks. However, the funds have not been disbursed until the end of December.

But the state treasury office said that the funds will be transferred to state investment agency Pusat Investasi Pemerintah (PIP) later this month before being disbursed to PLN.

PIP chairman Soritaon Siregar said in Jakarta Wednesday that he was optimistic that the funds which would be given to PLN as loans could be transferred to the agency before the end of the budget year in December.

He, however, said that the agency would have to wait for the issuance of a presidential regulation before the funds were being transferred to PLN. The regulation will be used as the legal basis for the signing of a contract for the disbursement of the government?s loans to PLN.

He said that the contract would among others stipulate the interest rate and maturity of the loans. The agency will likely use the Bank Indonesia rate as the reference for the loans, Soritaon said. (*)