Erick Thohir Gives A Signal To Close PLN Coal

SOE Minister Erick Thohir/PHOTO VIA ANTARA

JAKARTA - Minister of State-Owned Enterprises (BUMN), Erick Thohir, has signaled that he will close a subsidiary of PT PLN (Persero) or PT PLN Batubara. The plan arose in the midst of a critical condition of coal supply for general electricity.

"So PLN Batubara is a subsidiary company if the vision for the future from the Ministry of SOEs always wants to reduce the number of children and grandchildren of companies, especially those that are not needed", Erick told reporters, Thursday, January 6.

Erick said that the plan to disband PLN Coal was still in the study stage and had not been decided. However, the state-owned subsidiary may be closed.

Erick gave an example of PT Energi Management Indonesia (EMI), which was initially independent but has now been merged into a subsidiary of PLN. EMI is tasked with conducting an audit of the new renewable energy (EBT) program.

"This (PLN Coal) is one of the things that we will review whether the company is being merged, or closed. We haven't made any decisions about it. Because we can't make a sudden decision. This is what we are studying and it's not impossible how many again the subsidiaries of PLN that we reduce", he explained.

Erick said the disbandment was not necessary because there was an overlap between PLN's subsidiaries and the state-owned energy sub-holding which was also assigned to become a power plant.

"There should be no overlapping of power plants, there is PLN Coal, it's a unified grouping, let it be transmission but PLN but for the power generation industry it must also be more independent", he said.

On the other hand, Erick said that the current supply of coal for PLN is sufficient. As is known, previously PLN was threatened with a coal crisis. The lack of coal supply has an impact on millions of PLN customers ranging from the general public to industries in Java, Madura, Bali (Jamali), and non-Jamali areas.

"If I am the main task force at PLN, have the coal needs currently needed by PLN been fulfilled? What was not fulfilled yesterday, has now been fulfilled", he said.

Even so, Erick emphasized the importance of long-term planning. Erick does not want the problem of the coal crisis at PLN to continue to repeat itself.

"From the start, I said there must be a long-term plan. We can't always be surprised in this situation and I have held a meeting in January 2021, when it is repeated every year. Now, this is what I need to pay attention to", he said.