Government Pays Rp24.6 Trillion Of Electricity Compensation To PLN

JAKARTA - PT PLN (Persero) received compensation from the government of Rp. 24.6 trillion. The compensation is the realization of the electric stimulus scheme throughout 2021.

PLN President Director Darmawan Prasodjo appreciated the government's step to speed up the payment of this compensation. Darmawan previously explained that the process of disbursing this compensation would take up to two years.

"But now it can be done in the next semester. This is proof of improved governance from the government regarding compensation," said Darmawan at a press conference in Jakarta, Friday July 1.

Darmawan ensured that the compensation from the government is a form of the government's alignment with the community. Considering that since 2017, there has never been an adjustment in electricity rates for all categories of customer tariffs. The government has disbursed electricity subsidies of Rp. 243.3 trillion and compensation of Rp. 94.17 trillion from 2017 to 2021.

"This is a concrete step for the government. This is proof that the state is here to maintain purchasing power and obtain sustainable electricity services," said Darmawan.

This APBN allocation, said Darmawan, really supports PLN in ensuring that public electricity services are not disrupted. PLN will use this compensation fund to give back to the community through the construction of electricity infrastructure to ensure a reliable electricity supply for the community.

"We at PLN play a role by supporting the bailout of the community's electricity costs first. So that electricity can still be available to the community," said Darmawan.

PLN ensures that the subsidy distribution scheme and electricity compensation will continue to be improved. PLN continues to do data matching and data accuracy so that the allocation of subsidies and compensation can be right on target.

The government's presence is also strengthened by the application of tariff adjustments only for capable households above 3,500 VA and government customers. For other household customers, the government still takes sides.

"So that the APBN budget in the future can continue to be allocated for programs that are wider on the principle of benefit and social justice," added Darmawan.

Throughout 2021 PLN made extraordinary efforts to maintain the stability of PLN's financial condition due to oversupply by making efficiency efforts. Efficiency measures from the Opex and Capex side as well as BPP and Non Allowable Cost control through the implementation of the Cash War Room and Spend Control Tower.

"The goal is to closely monitor cost avoidance and cost reduction, digitize and integrate end-to-end business processes. We also centralize digital-based payments, so that cash can be optimized," said Darmawan.

With these efficiency measures, PLN's liquidity has improved. So that until now, PLN does not need to withdraw Global Bond loans and can still make timely payments of obligations, both loan payments and payments to third parties.

"We are also consolidating IPP developers. IPP generators which should have a Commercial Operation Date (COD) in 2021 and 2022, we are renegotiating for the postponement of the COD schedule. With this step, the TOP burden in 2021 and 2022 is avoided and there are costs saving, whose capitalization is IDR 45 trillion for PLN," said Darmawan.