PLN Workers Union Rejects Generation Privatization

INDUSTRY.co.id - Jakarta - The State-Owned Enterprise (PLN) Union publicly declared its rejection of the privatization option of the plant as a way out of estimates of the possibility that the BUMN Electricity failed to pay to meet its debt obligations.

"We firmly refuse to submit assets to the private sector which is an important production branch for the state and controlling the livelihood of the people constitutes a violation of the Constitution of the 1945 Constitution article 33 paragraph," said Chairman of PL PLN Jumadis Abda in a written statement in Jakarta on Thursday (5 / 10/2017)

The affirmation was related to the leaking of Minister of Finance Sri Mulyani Indrawati's letter to the Minister of Energy and Mineral Resources and the Minister of State-Owned Enterprises regarding PLN's worrying financial condition was included in the ability to repay debt.

To address the issue, in the letter, Finance Minister Sri Mulyani asked the Ministry of Energy and Mineral Resources and the Ministry of State-Owned Enterprises to lower the cost of electricity production, especially on the primary energy side, and evaluate the construction of a generous and excessive 35,000 MW generator program.

According to Jumadis, for the cost of building the power plant with funding from the debt, either by PLN itself or by the private sector will surely increase the burden for PLN.

"If the private company built the power plant, PLN is obliged to take or pay the electricity production, then PLN must pay 80 percent capacity factor," he said.