The Jakarta Post
State-owned electricity company PLN aims to earn Rp 391.6 trillion ($26.7 billion) in revenue and spend Rp 378.2 trillion in expenses next year, as it strives to balance the company's finances amid low demand this year.
PLN president director Zulkifli Zaini said on Tuesday the company would raise income by selling more power to large-scale customers, particularly industries, and by escalating marketing campaigns.
“[This is] in achieving a healthy financial position in 2021 so we can ensure operational continuity,” the former banker told House of Representative lawmakers in Jakarta.
The company, he continued, would minimize costs by deploying renewables in hard-to-reach areas and by maximizing the use of price-capped coal and gas, as required by the government’s Domestic Market Obligation (DMO) policy.
So far, Indonesia’s sole electricity distributor booked Rp 139.8 trillion in revenue in the first half this year, a modest increase of 1.6 percent from the same period last year, as power consumption growth was dampened by large-scale social restrictions (PSBB) implemented to prevent COVID-19 transmission.
PLN’s operating costs dropped 1.7 percent year-on-year (yoy) to Rp 149.9 trillion in the first half of the year. Its profit saw a steep fall of 96 percent yoy to Rp 251.6 billion in the same period due to a weak rupiah-dollar exchange rate and electricity relief schemes, among other things.
PLN’s unhealthy finances have sparked worries among many stakeholders, as the company, which monopolizes electricity distribution, plays a pivotal role in Indonesia’s power and renewables industry.
The electricity firm earned Rp 285.6 trillion in revenue and spent Rp 315.4 trillion in operating expenses in 2019, according to the company’s financial report.
PLN has yet to announce projected earnings for this year.
The Institute for Energy Economics and Financial Analysis (IEEFA), which conducted a recent study on PLN’s financial performance, projects PLN to earn Rp 314.4 trillion and spend Rp 398.2 trillion by 2021.