Berita

The government has taken several steps to revitalize PLN in order to anticipate power blackouts in 2010.  These steps include increasing PLN’s profit margin to 8%, up from a previous 5%, in order to improve PLN’s ability to fund investments.

“The government have prepared a Base Tariff Rationalization Policy, and an Aimed Subsidy Policy, projected towards low income societies” explains the Coordinating Minister for Economic Affairs, Hatta Rajasa during a press conference on “Evaluation of Indonesia’s 2009 Economic Development and 2010 Prospects” in Jakarta, Monday (4/1).

The government support towards PLN to handle power blackouts is given in the form of interest free loans, equity conversion of government loans toward PLN, and requesting PLN to carry out operation and investment efficiency measures.

The minister explains that from a regulatory aspect, in order to secure electricity supply in 2010, the government have prepared 4 Presidential bills: Bill on Alteration of Presidential Decree No. 71/2006; Bill on Alteration of Presidential Decree No. 72/2006; Bill on Renewable Energy, Gas, and Coal Powered Plants, and Bill on Independent Power Producer.

“For electricity and geothermal, the Minister of Energy and Mineral Resources on behalf of the government have issued a Ministerial Decree on the Standard Purchase Price From Geothermal Plants” remarked Hatta Rajasa.