PLN?s new board has too many members: Legislator

Thursday, December 24 2009 - 03:23 AM WIB

A legislator has lambasted the newly installed board of directors of state power utility PT Perusahaan Listrik Negara (PLN), saying that the board has too many members.

Satya W. Yudha, a member of House of Representatives (DPR) Commission VII which oversees among others energy affairs, said that new board has 10 directors, compared to only eight in the previous one.

?The board is too fat. Each director must have equal right in terms of facility. How can this be said to be efficient?? Satya was quoted by Republika as saying.

PLN still receives subsidy from the government and thus must operate efficiently. The enlarged board will make PLN inefficient. ?This is really an irony,? he was quoted by Republika as saying.

Satya said that the increase in the number of directors of PLN also ran counter with the House's recommendations that PLN?s board of directors be streamlined.

He warned that the additional number of directors would bring consequence for PLN?s new management, saying that the new management should be able to perform better than the old one. ?We?ll keep an eye on them. If their performance is the same (with the previous management), or even poorer, then they?ll certainly disappoint many people,? he said.

PLN is one of Indonesia?s biggest organization with over 50,000 employees, of whom 38,000 permanent ones, across the country. The company provides services to 38 million customers.

Dahlan Iskan, chief executive officer the Jawa Pos Group, was installed on Wednesday as PLN?s new President

Director, replacing Fahmi Mochtar.

Led by Dahlan, PLN?s new board of directors 10 members. They are IGA Ngurah Anyana as director of the Java ?Bali operation, Moch Harry Jaya Pahlawan as director of West Java operation, Vickner Sinaga as director of eastern Indonesia, Nasri Sebayang as director of the planning and technology, Nur pamudji as director of Primary Energy, Bagiyo Riawan as director of provision of strategic goods, Murtaqi Syamsuddin as director of business and risk management (previously director of Java-Madura-Bali operation), Eddy D Emingpraja as director of human resources and general affairs, and Setio Anggoro Dewo as director of finance (permanent position).

New board of commissioners was also installed on Wednesday with members as follows: Yogo Pratomo as chief commissioner, Lutfi Hamid as independent commissioner, Adang Frman as independent commissioner, Wimpy S Tjetjep as commissioner, Syahrial Loetan as commissioner and Abdul Aziz as commissioner.

Meanwhile, Minister of State Enterprises Mustafa Abubakar said that the reason behind his decision to select Dahlan Iskan as a new PLN leader was that Dahlan offered a radical concept with respect to the development of PLN.

Dahlan?s radical ideas include a breakthrough to erase fuels subsidy for power plants, bringing new technology, and efforts to use gas and coal. Dahlan, he said, promised a leap in handling the state utility company.

?He has expressed his readiness to seek funds under new funding schemes to finance power plant projects and settle the company?s debts,? he said.

According to Abubakar, the government sets the financial performance target that the company management should reach. ?The new management is bound by a working contract that will bring the company to a better direction,? he said.

Asked how he would deal with electricity crisis, especially in Jakarta, which has experienced frequent massive blackouts due to the burning of transformer, Dahlan said that the old management had taken the right step. ?The old management has settled the problem. They did not only repair the electrical relay station but also change the system. Now, Tangerang has its own electrical relay station and Jakarta has additional ones. We?ll just continue it (the old program),? he said.

?What we should think now is to how to provide stocks for electrical relay station and so in case a transformer is burned, then this won?t have any effect because we have the stock,? he aid.

Dahlan also promised to build a power plant with a capacity of 1,500 up to 2,000 megawatt (MW) to solve power crisis outside Java. (*)

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