The President Director Of PLN Lapor Has Successfully Debt Up To IDR 41 Trillion Since 2020

PLN President Director Darmawan Prasodjo. (Photo: Doc. ANTARA)

JAKARTA - President Director of PT PLN (Persero) Darmawan Prasodjo reported, throughout 2022 PLN managed to reduce interest expense to IDR 7 trillion from balance in 2020, and reduce debt balance to IDR 41 trillion from 2020 balance and increase the debt service coverage ratio (DSCR) to 1.97 times in 2022.

"We pay off the debt from 2020 to 2023 amounting to IDR 62.5 trillion and this reduces the debt balance to IDR 41 trillion compared to 2020," Darmawan said in a Hearing Meeting with Commission VI of the Indonesian House of Representatives, Wednesday, February 15.

Darmawan also reported that PLN succeeded in increasing revenue and in the process of increasing this revenue accompanied by cost reduction.

He explained that PLN also managed to cut capital expenditure (capex) which was previously IDR 70 trillion to IDR 57 trillion.

Darmawan said this was done through delaying the expansion of unneeded assets.

"We have postponed our electricity asset, where we still don't need assets. As a result, we can reduce the capex from Rp70 trillion to only Rp57 trillion," explained Darmawan.

He added that the increase in revenue was accompanied by a reduction in investment, a reduction in capex and continued with a reduction in the operational budget or OPex.

"This impact shows that our debt service coverage ratio, namely operating cash flow, compared to the principal payment and interest can increase from 1.41 to 1.97, in this case we also centralize the implementation end-to-end once there is a demand dynamics added or reduced, we immediately provide adjustments," continued Darmawan.

He said the company also carried out a number of financial management initiatives such as the protection debt management, namely accelerating debt payments that had matured with interest records that could be reduced.

"We also do cash war rooms, we have visibility, both revenue and spending, both short-term, medium and long-term, so that we can accurately design both the addition of our income as well as the management of our expenditure, namely cash flow to be faster with liquidity control," concluded Darmawan.