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Commentary: Risks loom large as PLN piles on debt after debt
As of the first half of this year, PLN had outstanding debt of about Rp 265.4 trillion (US$19.6 billion).
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Two employees of state-owned electricity firm PLN walk at a power plant complex. (Kontan/Cheppy A. Muchlis)
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n a press conference last week after the Financial System Stability Committee (KSSK) meeting, a forum to identify impending threats to the economy, Finance Minister Sri Mulyani Indrawati was asked whether the financial affairs of state power company PLN was a major concern.
She replied that her job was to ensure that the development priorities assigned by President Joko “Jokowi” Widodo to PLN would not be undermined by “undetected risks,” and that the ministry would continue to monitor the company’s cash flow and obligations.
The ministry, she added, would work closely with other ministries to identify the risks that could impact PLN in servicing its debt because it could impair the “national reputation.”
Sri Mulyani’s remarks have amplified her recent concern over PLN’s capacity to pay its debt after her warning letter about the problem was leaked last month.
