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Jakarta Post

PLN may revise investment plans

  • Alfian

    The Jakarta Post

Jakarta   /   Tue, September 8 2009   /  10:07 am

State electricity company PT PLN may have to reconsider its investment plans for 2010 following the House of Representatives’ rejection of the company’s request to raise its production cost margin, from the current 5 percent.“With the five percent margin decision, PLN cannot make the investments detailed in its business plan. We must reevaluate our investment plans and find other ways out,” PLN president director Fahmi Moctar told reporters Monday. On Aug. 24, the House’s Commission VII overseeing energy and mining approved PLN’s request to have its production cost margin’s raised to 8 percent for 2010.But, last week, the House’s budget committee rejected the proposal. As a state company, PLN’s margin is given in the form of government subsidies. PLN’s says that with the 5 percent margin, and with  the Indonesian Crude Price (ICP) set at US$60 per barrel, a total...