Supreme Audit Agency (BPK) Findings: PLN Receives Rp1.2 Trillion in Excess Electricity Compensation Funds

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Adi Ahdiat 06/10/2022 10:50 WIB

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According to the Supreme Audit Agency (BPK) findings, Perusahaan Listrik Negara (PLN), the Indonesian state electricity company, received an overpayment of Rp1.2 trillion (approximately US$80 million)

Findings of the Indonesian Supreme Audit Agency (BPK) Regarding Issues at PT PLN (2017-2021)

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Supreme Audit Agency (BPK) Findings: PLN Receives Rp1.2 Trillion in Excess Electricity Compensation Funds

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Findings of the Indonesian Supreme Audit Agency (BPK) Regarding Issues at PT PLN (2017-2021)

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According to the Indonesian Financial Audit Agency (BPK), Perusahaan Listrik Negara (PLN), the state-owned electricity company, received a significant overpayment of electricity compensation from the government.

This BPK finding is recorded in the Semester I 2022 Summary of Audit Results (IHPS I), released on October 4, 2022.

The BPK stated that in 2020, PLN failed to coordinate with the Ministry of Energy and Mineral Resources (ESDM) regarding efforts to improve operational efficiency in calculating electricity tariff adjustments.

"This resulted in PT PLN receiving Rp1.20 trillion more in electricity compensation funds from the government," the BPK explained.

Compensation refers to the funds paid by the government to PLN to cover the higher Basic Cost of Provision (BPP) of electricity, exceeding the selling price to non-subsidized consumers.

Following this finding, the BPK recommended that PT PLN's Board of Directors coordinate with the Ministry of ESDM and the Ministry of Finance.

The BPK also found issues of inefficiency and ineffectiveness in PLN's procurement of the national electricity transmission network during the 2017-Semester I 2021 period.

"In the procurement of the transmission network, PT PLN has not optimally implemented the preparation of its own estimated price (HPS) for the construction of transmission network infrastructure to achieve the most advantageous price," the BPK stated.

"This resulted in PT PLN losing the opportunity to obtain a cheaper procurement price, at least Rp53.30 billion, in the construction of transmission network infrastructure," it continued.

Regarding this issue, the BPK recommended that PT PLN's Board of Directors establish internal regulations and a reference price database as a guideline for procurement of goods and services, particularly concerning transmission network infrastructure.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Supreme Audit Agency (BPK) Findings: PLN Receives Rp1.2 Trillion in Excess Electricity Compensation Funds

Supreme Audit Agency (BPK) Findings: PLN Receives Rp1.2 Trillion in Excess Electricity Compensation Funds

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Supreme Audit Agency (BPK) Findings: PLN Receives Rp1.2 Trillion in Excess Electricity Compensation Funds

Supreme Audit Agency (BPK) Findings: PLN Receives Rp1.2 Trillion in Excess Electricity Compensation Funds

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