Rp 5 Trillion Loss Due to Swelling Foreign Exchange Losses

PT Perusahaan Listrik Negara (Persero) (PLN) reported a net loss of Rp 5.35 trillion in the first half of 2018, compared to a net profit of Rp 2.03 trillion in the same period of the previous year. According to the published financial statements, the state-owned electricity company's losses were triggered by a surge in foreign exchange losses to Rp 11.58 trillion in the first half of this year, compared to only Rp 222.45 billion in the first half of last year.

The 2018 State Budget (APBN) pegged the rupiah exchange rate at Rp 13,400 per US dollar. However, by the end of June this year, the rupiah weakened by Rp 1,004 or 7.49%, reaching Rp 14,404 per US dollar. The depreciation of the rupiah amid rising global oil prices caused PLN's foreign exchange losses in the first half of this year to surge by more than 5,000% compared to the first half of last year.

The losses incurred by the state-owned electricity provider were also driven by the lack of electricity tariff increases since the middle of last year and the higher growth in operating expenses compared to operating income. In the first half of this year, the company's operating expenses increased by 9.35% to Rp 142.43 trillion. Meanwhile, operating income only increased by 7.44% to Rp 131.53 trillion. Before receiving electricity subsidies from the government, PLN's losses increased by 39.28% to Rp 10.89 trillion. For information, the company's tax burden in the first half of this year also jumped 135% to Rp 7.19 trillion from the first half of last year.