Continue BPK Recommendations, PGN And IAE Continue To Coordinate

JAKARTA - PT PGN Tbk (PGAS) and PT Inti Alasindo Energi (IAE) continue to coordinate intensively to follow up on the recommendations of the Supreme Audit Agency (BPK).

PGN's Director of Strategy and Business Development Rosa Permata Sari said PGN always coordinates with IAE regarding the refund of PGN's advance payment.

Coordination is important to get certainty about the return of advance payments from the IAE business.

To date, various efforts have been made by both parties and leave an advance payment of 14.19 million US dollars

"We propose that the remaining advance payment can be returned through part of the IAE revenue portion and hope that the IAE can coordinate internally with the lender regarding the amount of the portion," said Rosa.

In addition, in connection with the oversupply existing conditions, PGN has not been able to continue the interruptable PJBG and proposes the IAE can sell gas to other customers. With the hope, this can increase IAE sales, thereby accelerating the process of returning advance payments.

"On the recommendation from BPK RI, PGN has also coordinated with PT Pertamina and the Ministry of SOEs regarding the plan to return PT IAE's down payment," said Rosa.

He revealed that in principle the IAE can accept proposals from PGN.

The IAE will coordinate internally with stakeholders and lenders regarding the portion of revenue that can be given to PGN.

After obtaining an internal agreement, stakeholders and lenders, the IAE hopes that this option can be implemented immediately so that an advance payment can be returned immediately.

"For now, what we can convey is that PGN and IAE will prepare further details of the advance payment return scheme. In parallel, we have also asked the IAE to carry out obligations according to the contract. In addition, we have also followed up on this BPK recommendation to law enforcement officials (APH)," said Rosa.

PGN continues to strive to maintain the sustainability of natural gas business services to customers and national natural gas management, including to ensure certainty of cooperation with various partners.

With this principle, PGN continues to coordinate to follow up on the results of the BPK examination, one of which is regarding the provision of advance payments to IAE worth 15 million US dollars.

PGN and IAE plan to partner for gas distribution from the BD-HCML Field by IAE to PGN.

This is carried out in an effort to maintain the safety of natural gas supply and distribution services to customers.