PLN's Total Debt Reached Rp 649.2 Trillion in 2020

State-owned electricity company PT Perusahaan Listrik Negara (PLN) had a total debt of Rp 649.2 trillion in 2020. This figure represents a decrease of only 0.98% compared to the previous year's Rp 655.7 trillion.

PLN's total debt comprises long-term and short-term liabilities. Long-term liabilities amounted to Rp 499.6 trillion, while short-term liabilities reached Rp 149.7 trillion.

Long-term liabilities were dominated by bonds and ijarah sukuk totaling Rp 192.8 trillion. Bank loans accounted for Rp 154.5 trillion, and compensation debts for Rp 54.6 trillion.

Meanwhile, the largest component of short-term liabilities was other debts at Rp 30.9 trillion. There were also third-party trade payables of Rp 30.6 trillion, bank loans of Rp 18.8 trillion, and bonds and ijarah sukuk of Rp 15 trillion.

The significant debt burden of the electricity company drew criticism from the Minister of State-Owned Enterprises, Erick Thohir. He expressed concern about PLN following a similar path to PT Garuda Indonesia (Persero) Tbk (GIAA), which had a total debt of US$ 10.36 billion in Q3 2021.

Therefore, the government is working to improve PLN's financial health by cutting its capital expenditure budget by 50%. PLN has also been instructed to renegotiate its debts to secure lower interest rates. Furthermore, PLN is required to negotiate its electricity purchase agreements ("take or pay") worth Rp 60 trillion.