PLN won't bankrupt: Purnomo
Thursday, November 23 2000 - 04:00 AM WIB
Minister of Mineral Resources and Energy Purnomo Yusgiantoro said Wednesday that the state-owned electricity firm PLN would not go bankrupt although the government decided to reject the demand for a raise in electricity tariff.
"PLN will not go bankrupt," Purnomo said.
PLN president Kuntoro Mangkusubroto said recently that the company had proposed a raise in electricity tariff next year in a bid to help amend the company's financial condition.
PLN had been badly hit by the current economic crisis. The company must also pay some Rp 21 trillion in short-term debt maturing end of this year.
Purnomo said that the government would not raise the electricity tariff, and instead suggested PLN to take other measures to improve its financial condition including through debt restructuring, and negotiation of power tariff with the independent power producers.
The government had also earlier rejected Kuntoro's proposal for the government to bailout the company's short-term debt. But Coordinating Minister for the Economy Rizal Ramli rejected the proposal.
There has been rumors that the government is preparing to replace Kuntoro. (R. Amoros)