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Audit Agency reports state losses due to PLN's inefficiencies
The Jakarta Post , Jakarta | Tue, 10/21/2008 3:00 PM | National
The Supreme Audit Agency (BPK) has reported that operational inefficiencies at state electricity company PT PLN have cost the state Rp 16.30 trillion.
In addition, some Rp 6.6 trillion of state oil and gas company PT Pertamina's budget expenditure last year was "excessive", BPK head Anwar Nasution told a House of Representatives plenary meeting in Jakarta on Tuesday.
"The budget subsidy they requested for 2006 was Rp 1.17 trillion, yet in 2007 they asked for Rp 6.60 trillion," he said, adding that the subsidy was higher in 2007 because the company had budgeted based on an unofficial fuel price.
The meeting also heard that Rp 1.78 trillion in expenditure from the state electricity budget was unaccounted for.
Also according to the report, a malfunction at power plant PLTG Borang and the subsequent transfer of operations to power plant PLTG Apunt between 2004 and 2007 potentially cost the state a total of Rp 62.59 billion. (adt)
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