Ministry Of Finance Pays Electricity Compensation Of IDR 17.8 Trillion To PLN

Illustration of the PLN (ANTARA) power grid

JAKARTA - The Ministry of Finance has accelerated the payment of compensation funds for the difference in electricity rates by several groups with electricity supply principal fees (BPP) to PT PLN (Persero). The amount of compensation payments is IDR 17.83 trillion for the fourth quarter of 2023 period.

PLN President Director Darmawan Prasodjo appreciated the government's support in realizing this compensation fund. In addition to contributing to maintaining the company's liquidity, compensation payments are also a form of government support in efforts to move the economy through the electricity sector.

According to Darmawan, this compensation is a form of state presence to maintain people's purchasing power and national economic growth.

"We are grateful for the support of the Indonesian government. The state is really here to support electricity services and help the company to continue to grow with positive cash flow. Furthermore, PLN can be more active where electricity is not just to illuminate but also to move the community's economy," said Darmawan in a written statement, Friday, May 24.

Darmawan explained, in the midst of various global economic challenges that occurred, the Government of Indonesia and PLN continued to strive to provide fair and affordable electrical energy. This is shown through the government's policy to maintain people's purchasing power.

"This is a concrete step by the government where the governance carried out by the government is very good. This is also a manifestation that the state is here to maintain purchasing power and obtain sustainable electricity services," he said.

Throughout 2023 PLN carried out extraordinary efforts to maintain the stability of PLN's financial condition by making efficiency efforts.

Meanwhile, PLN has a Cash War Room (CWR) program that focuses on comprehensive financial management strengthening, both in terms of budget control and performance, liquidity management and debt management, as well as asset valuation management.

In 2024, CWR will begin to add a focus on efforts to increase the top line through sales and distribution optimization.

"With this program, we really have visibility, both our revenue and cost expenditure, starting from the short, medium and long term. So that financial management is more optimal and efficient," added Darmawan.

Despite being faced with various economic challenges, PLN remains committed to encouraging performance growth. This is reflected in the realization of PLN's electricity sales throughout 2023 which experienced positive growth.

PLN's electricity sales in 2023 increased to 285.23 Terrawat hour (TWh). This sales realization grew 5.32 percent year on year (yoy) from 2022 by 270.82 TWh.

Meanwhile, the business segment became one of the main pillars with growth reaching 12.53 percent. Meanwhile, the industrial segment is the largest contributor to electricity sales with 30.72 percent of the total selling energy.

"PLN ensures that the compensation given to the community is right on target, PLN uses this compensation fund to be returned to the community through the development of electricity infrastructure and ensuring reliable electricity supply for the community," concluded Darmawan.