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Jakarta Post

PLN opts for rate adjustment rather than compensation

  • Stefanno Reinard Sulaiman

    The Jakarta Post

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Jakarta   /   Mon, July 1, 2019   /  01:42 pm
The Jakarta Post Image
Fix it fast: Several technicians of state-owned electricity company PLN replace a damaged isolator in Jakarta. PLN hopes it will be allowed next year to adjust its electricity prices to cover financial losses.(The Jakarta Post/Dhoni Setiawan)

State-electricity firm PLN hopes the government will allow it to make a price adjustment or continue its compensation scheme next year to offset financial losses.  PLN finance director Sarwono Sudarto said after a hearing with the House of Representatives in Jakarta on Thursday last week the compensation scheme would be needed if the government did not allow the company to raise electricity prices next year.  “We hope there will be a compensation if there is no rate adjustment. Without the compensation it will be hard for us to deal with the impact of external factors [global crude price, inflation and currency exchange],” he said.  PLN sold its electricity below the electricity supply costs (BPP) following a request from President Joko “Jokowi” Widodo in 2018.   The low price policy was criticized by...