Doesn't Take Long, Erick Thohir Will Disband PLN Coal This Year

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir confirmed the disbandment of a subsidiary of PT Perusahaan Listrik Negara (Persero) or PLN, namely PT PLN Batubara (PLN Coal), would be executed this year. According to Erick, currently, PLN as the parent company is reviewing the supply chain of coal to other company businesses.

"It could be the end of this year (disbanded)," he said at a press conference, Wednesday, January 19.

According to Erick, he has directed PLN management to immediately implement efficiency. On this occasion, Erick opened up the possibility that this PLN subsidiary could do it.

"PLN Coal could just be merged, or closed, yes, yesterday we also merged food holdings, such as Perinus and Perindo, BGR with PT PPI. Now that's being studied again," he explained.

On the same occasion, the President Director of PLN, Darmawan Prasodjo said that his party was conducting a thorough review of the coal supply chain.

Darmawan said, from the direction of the SOE Minister, the company must identify the coal supply chain which is currently fragmented, complex, long, and convoluted, so that it can be immediately streamlined.

"Where, there are weak points accelerated. However, if indeed an organization must be changed so that the supply chain business processes can change what was previously unreliable into reliable and efficient," said Darmawan.

Previously, the Special Staff of the Minister of SOEs, Arya Sinulingga, confirmed the news of the plan to disband a subsidiary of PT PLN (Persero) or PT PLN Batubara. Arya said, currently the plan is being reviewed technically, including the ownership of the assets.

"There are a lot of questions about PLN Coal, that's true. Right now we are currently reviewing technically for its disbandment. Because we also need to calculate the technical, calculate how many assets, we can't (do it fast), the process must exist. Later From there, we will take steps to disband it," he told reporters, Friday, January 14.

Arya explained that the reason for the disbandment of PT PLN Batubara was for efficiency. Because, said Arya, so far PLN has purchased coal through PLN Batubara from coal owners. Therefore, efficiency is needed so that there is no need for an intermediary in the purchase of coal.

"Well, it's still the same, like it or not, PLN Coal takes a margin as well, right. We want to be efficient, so from an efficiency perspective, what will be done in this way, the owner of the coal owner will go directly to PLN, so intermediary is no longer used, which is PLN Coal," he said.