Power firm PLN owes Pertamina Rp 35 trillion
The Jakarta Post, Jakarta | Thu, 08/28/2008 4:09 PM
State oil company PT Pertamina on Thursday reported that state- owned power firm PT Perusahaan Listrik Negara has failed to pay a debt with Rp 35 trillion from fuel purchases since 2006.
"Yes, PLN's debt is a lot -- Rp 40 trillion. So far, it has only paid Rp 5 trillion through bonds," Pertamina financial director Frederick Siahaan said on Thursday in a hearing with members of House of Representatives Commission VII, which oversees energy affairs.
Frederick suggested PLN issue a letter of credit or L/C as a payment guarantee if the government refused to pay the debt. A letter of credit is a legal document issued by banks to provide an irrevocable payment to a beneficiary stated in the letter.
"We have demanded that they pay. All I want is for a fair treatment. If they pay for their coal consumption, why not pay us?" he said. (and)
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