Subsidy for PLN may swell by Rp 14.82 trillion

The surge in oil consumption due to gas supply shortage may cause an increase in the government?s subsidy for state electricity company PT Perusahaan Listrik Negara (PLN) by Rp 14.82 trillion (1US$ = Rp 8,676) this year, a legislator said.

Satya W.Yudha, a member of the Commission VII of the House of Representatives, said in Jakarta on Monday that the increase in the subsidy could not be avoided, but PLN should be able to increase its efficiency so that the surge in the subsidy could be limited.

?We asked PLN to improve its efficiency. They should know how to cut down operating costs as they have promised to do this before,? he was quoted as saying by Bisnis Indonesia. He said that the proposal to get additional subsidy of Rp 14.82 trillion would not be approved if the company did not have any intention to improve its efficiency.

Meanwhile PLN president director Dahlan Iskan acknowledged that the company had asked for additional subsidy. But, he added, it would be up to the government to decide the additional amount to be given to the state electricity company. (*)