The Jakarta Post
State-owned electricity company PT PLN's new president director Sofyan Basir has said he is more impelled to increase the company's revenue than reduce its debt ratio.
'Debt ratio within a certain range is not a problem. Creating debt is not a sin as long as it can produce better results. Don't push me to say 'PLN is not allowed to create debt' but as a result, electricity blackouts continue to occur,' Sofyan said on Tuesday evening at the State-Owned Enterprises Ministry office in Jakarta, as quoted by Antara news agency.
The government determined Sofyan as new PLN president director for the 2014-2019 period. State-Owned Enterprises Minister Rini M. Soemarno inaugurated Sofyan in a swearing-in ceremony at her office on Tuesday. Energy and Mineral Resources Minister Sudirman Said also attended the event.
After his inauguration, Sofyan talked to journalists who questioned his capacity to improve the company's work performance.
Sofyan, who previously served as Bank Rakyat Indonesia (BRI) president director, admitted that PLN had a huge amount of debt, reaching Rp 471 trillion (US$37.8 billion).
'Credit facilities received by PLN are certainly to be used to increase the company's work performance, especially to increase electrification and to improve infrastructure,' he said.
Sofyan went on to say that any company was allowed to create debt. He highlighted, however, that it was also important for a company to increase revenue and improve cost efficiency.
Therefore, he said, there should be solid teamwork in the company so that all programs could run well.
'We will just continue what has been conducted by my predecessor, [former PLN president director] Pak Nur Pamudji, as he did everything well,' said Sofyan.
Meanwhile, Rini was convinced that under Sofyan's leadership, PLN could reduce its corporate debts.
'We are sure that PLN's debts can be managed well. With his background as a banker, Pak Sofyan will be able to handle various problems in PLN as happened when he successfully handled human resources development at BRI,' said Rini.
Apart from appointing Sofyan, the State-Owned Enterprises Ministry, on behalf of the company's stakeholders, also determined seven new PLN directors. They are Amin Subekti, Amir Rosidin, Murtaqi Syamsuddin, Nasri Sebayang, Nicke Widyawati, Sarwon Sudarto and Supangkat Iwan Santoso.
Meanwhile, Chandra Hamzah was appointed as president commissioner, while Budiman and Hasan Bisri became Board of Commissioners members. (ebf)