JAKARTA - President Joko Widodo quipped PT PLN (Persero) because the subsidy that has been given is quite large but does not provide efficiency.
In response to this, the Executive Director of Energy Watch Mamit Setiawan said that what was conveyed by President Joko Widodo was correct and needed to be followed up by PLN immediately.
"PLN is a business entity with a large number of business entities, so it needs to be reorganized and revamped their business processes. This is very important, so that the efficiency that the president intends can be carried out by PLN," Mamit said in his written statement, Thursday, June 23.
According to him, currently the line of business carried out by PLN is quite large and large so that PLN's performance is not focused and tends to pile up in terms of both performance and responsibility.
"The accumulation of the same business units makes PLN's performance less than optimal and causes double costs or double handling to create inefficiencies within PLN's own business units. From a responsibility perspective, each business unit also exceeds what it should be, and there tends to be repetition of one another. , said Mamit.
Mamit gave an example, in terms of generation alone, PLN has several subsidiaries whose core business is actually the same.
This causes the accumulation of business units and responsibilities.
"This buildup likes or dislikes making PLN inefficient. Not to mention related to responsibilities, this generation business unit must also take care of services to the community. So, apart from being inefficient, this can cause the performance of the generation unit not to focus on providing reliable electricity supply," explained he.
According to Mamit, in the midst of changing and dynamic global economic and business conditions, PLN must immediately transform their business so that they can compete and be more efficient.
"Transformation and improvement of PLN's business governance is a must that must be rushed so that PLN can survive in the midst of this dynamic and difficult global economic and business condition and continue to carry out the Public Service Obligation (PSO) function as mandated by the government," said Mamit.
The space for PLN to move must be more flexible and flexible in dealing with such a formidable challenge. If not, then PLN may be left behind and cannot carry out the mandate conveyed by the President to be more efficient, economical and able to cover the leaks that have occurred.
"Currently all global companies are heading towards a modern, transparent business and of course towards Environmental Social Governance (ESG). Through the transformation and improvement of PLN's business governance, the efficiency that the President has asked for can be achieved and PLN continues to run their business while taking into account Environmental Social Governance (ESG)," concluded Mamit.
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