PLN suffered net loss of Rp 4.5 trillion in first semester

State owned electricity company PLN reported a net loss of about Rp 4.53 trillion in the first semester of this year, an increase of about 60 percent from about Rp 2.85 trillion in losses in the same period, last year, Neraca reported on Friday.

In its report, the company attributed the sharp increase in the financial loss to higher spending for fuels and the loss from foreign exchange transactions during the first six months of this year.

PLN said that its total loss from operation reached about Rp 42 trillion due to the high fuel spending which rose to about Rp 15.46 trillion in the first six months of this year from Rp 11.48 trillion in the same period last year.

The company’s loss from foreign exchange transaction declined to Rp 668.97 billion thanks to more stable rupiah from Rp 1.68 trillion in the same period, last year, but the decline was still too small to cope with the increase in the other costs.

Recently, the House of Representatives approved a proposal to provide subsidy of between Rp 15 trillion to Rp 20 trillion for 2006 financial year, down from Rp 38.5 trillion in 2005. (*)