|
...tariff (TDL) and losses carried over from previous years and inefficiency in distribution systems, sales and billing that caused high cost economy.
In 2005, PLN succeeded in increasing sales of electric power and operating income, but it still posted losses that it was put in the category of less healthy company in financial performance.
Its net loss rose to Rp 4,920 billion in 2005 or an increase of 143.43 % from the previous year's Rp 2,021 billion. The surge in losses came with the government's decision not to raise TDL. It was also attributable to increase in cost of fund, swelling debt repayment burden, loss on foreign exchange, etc.
In the second quarter of 2006, PLN posted a loss of Rp 65.5 billion because of a surge in depreciation of networks to 12.06% exceeding the projection of 10.12%.
The cost of buying oil fuels and power from IPP often change to follow the market trend but PLN is not free to make adjustments. Any increase in TDL always meets protest from the consumers.
In 2005 and 2006, the government decided not to raise TDL As a result PLN has to carry heavier burden.
Total assets and income up
Total assets of PLN were estimated to reach Rp220,843 billion in 2005 or up 4.27% from the previous year's Rp 211,794 billion. The increase followed new investment in fixed assets.
Its long...
NOTE: All illustrations and photos
have been removed from this article.
More articles from Indonesian Commercial Newsletter
Pertamina to build cracker unit in Cilacap.(CORPORATE NEWS IN BRIEF)(P..., October 01, 2006
Construciton of Senoro LNG plant to start in 2007.(CORPORATE NEWS IN B..., October 01, 2006
Construction of Kualanamu airport to start next year.(ECONOMIC NEWS IN..., October 01, 2006
RI-USA transshipment incooperation.(ECONOMIC NEWS IN BRIEF)(Brief arti..., October 01, 2006
Indonesia- United States to cooperate against illegal logging.(ECONOMI..., October 01, 2006
Looking for additional articles?
Search our database of over 3 million articles.
Looking for more in-depth information on this industry?
Search our complete database of Industry & Market reports by text, subject, publication
name or publication date.
About Goliath
Whether you're looking for sales prospects, competitive information, company
analysis or best practices in managing your organization,
Goliath can help you meet your business needs.
Our extensive business information databases empower business
professionals with both the breadth and depth of credible,
authoritative information they need to support their business
goals. Whether it be strategic planning, sales prospecting,
company research or defining management best practices -
Goliath is your leading source for accurate information.
|
(financial%20report)(statistical%20data)%20%20&position=1)