Loss Of IDR 38 Trillion In The First Quarter Of 2020, PLN Remains Optimistic That Its Operations Will Not Develop Or Develop

Illustration. (Photo: PLN)

JAKARTA - PT Perusahaan Listrik Negara (Persero) or PLN recorded a loss of IDR 38 trillion in the first quarter of 2020 financial statements. Even so, PLN is optimistic that operations can last until the end of the year, as long as the government pays debts originating from the 2018 and 2019 electricity tariff compensation.

President Director of PLN, Zulkifli Zaini explained, in general, PLN's finances will be greatly helped by the payment of compensation from the government of IDR 45 trillion. He said, with these funds PLN will ensure that operations remain safe.

Zulkifli said that while waiting for the payment of compensation from the government amounting to Rp45 trillion, PLN will also optimize electricity meter sales each month to provide optimal service.

"PLN will also optimize the sales of electricity every month and operationally we can continue to provide optimal electricity services," he said, during a hearing with Commission VI of the House of Representatives, Thursday, June 25.

Record Loss of IDR 38 Trillion in the First Quarter

Previously, at the beginning of the Commission VI meeting, they questioned the Rp38 trillion loss reported by PLN in the first quarter. This is because the information on the loss was known by the DPR from the news in the mass media.

Regarding losses, Zulkifli explained, the first quarter financial report which recorded a loss of Rp38 trillion was a loss originating from the rupiah exchange rate against the US dollar.

"The loss occurred due to differences in the US dollar exchange rate on December 31, 2019 and March 31, 2020 when the financial statements were submitted," he explained.

Zulkifli explained, based on corporate financial reporting practices, the US dollar price used as the basis for calculation is the dollar price recorded on the day the financial statements were made.

Furthermore, Zulkifli said, PLN also has liquidity that is maintained prudently and conservatively. Financially, PLN has also collaborated with Bank Himbara by having the comitted facility provided by these banks of IDR 28 trillion.

In addition, said Zulkifli, PLN has also allocated IDR 7 trillion from the Monday market line which is planned to be upsized to IDR 15 trillion-20 trillion. Not only that, PLN is also currently seeking international loans with very low interest from the international market to ensure the financial stability of the company, including long-term loans and business development needs.

Zulkfli explained that his party was also revising the 2020 Work Plan and Company Budget (RKAP) work plan, including a decrease in capital expenditure or capital expenditure (Capex). This is because the impact of the COVID-19 pandemic has caused demand in the Java-Bali system to fall by around 11 percent, electricity consumption in business customers has fallen by 15 percent and industry has fallen by 11 percent.

Furthermore, he said, with the capex reduction in accordance with the 2020 PLN RKAP, his party was conducting sweeping and sorting for operating costs gradually and compiling based on priority.

Electrizen: Did the electricity tariff go up? PLN: We make sure there is no electricity increase, the price is still the same as the previous three months period. In fact, since 2017, electricity rates have never experienced an increase #ElectricUntukSall #ListrikUntukRakyat #TarifListrikTidakNaik pic.twitter.com/gSShEodr3m

- PLN ID (@_pln_id) June 8, 2020

"So that the impact of the reduction in capital spending can still be controlled in accordance with the corporate budget," he said.

According to Zulkifli, currently it is very important to maintain the cost of providing electricity to remain stable, to maintain reliable and quality services, and to maintain the government's fiscal burden.

"It is also very important for PLN to pay attention to the financial condition of PLN partners so that the priority for operating costs is determined based on these factors," he explained.