PLN?s net losses drop by Rp 1.8 trilion in 2001

State electricity company PT PLN said on Tuesday its net losses had dropped by Rp 1.8 trillion (US$ = 10,380) in 2001 from the previous year?s Rp 24.6 trillion.

The drop was partly due to the government?s decision to write off PLN?s debts of Rp 20.8 trillion, company president director Eddie Widiono said.

Other factors were the government?s move of raising the basic prices of electricity by 17.47 percent on average, and the cut in the price of electricity supplied by independent power producers, Eddie said.

PLN experienced serious cash flow problems after severe economic crisis hit Indonesia in 1997 which caused the rupiah value drop sharply against the US dollar. PLN sold its electricity in rupiah, while it paid in US dollar for the power supplied by private power producers.

Eddie said the company will need Rp 99 trillion for the operation of 44 new power plants and power transmission systems outside Java and Bali up to 2005. (godang)