PLN seeks additional subsidy from govt
Saturday, September 10 2005 - 02:16 AM WIB
State electricity company PT Perusahaan Listrik Negara (PLN) is still hoping that the government will give additional subsidy for its purchase of fuel to reduce its losses, the Kompas reported in its Saturday edition.
This was disclosed by PLN president director Eddie Widiono in Jakarta on Friday. Due to the efforts of government and the House of Representatives to reduce budget deficit, PLN may not get the additional subsidy. It is the only way for PLN to cut the production costs. If not, PLN must find alternative ways, including raising the power prices.
“We are still expecting that the government will give it (additional subsidy) as way out to reduce the PLN’s burden a little bit,” Eddie said.
PLN will need Rp 15 trillion if it buys fuel at a rate of Rp 2, 220 per liter
Currently, PLN buys diesel oil at the subsidized price of Rp2,200 per liter while the market price is Rp5,000 per liter. (*)