This is PLN's Debt Ratio

The leaked letter from Indonesian Finance Minister Sri Mulyani Indrawati to the Minister of State-Owned Enterprises and the Minister of Energy and Mineral Resources (ESDM) regarding Perusahaan Listrik Negara (Persero)/PLN has raised concerns that the state-owned electricity company will face difficulties in repaying its debts. This includes both principal and interest payments in the coming years.

According to Bloomberg data, the debt-to-equity ratio (DER) as of June 2017 reached 32.35 percent. This means that the electricity company's equity of Rp 881.54 trillion is able to cover its total debt of Rp 285.17 trillion, or less than one-third of PLN's capital. This debt ratio is significantly lower than its 2013 position, which exceeded 250 percent.

Meanwhile, PLN's current ratio (current liabilities divided by current assets) at the end of the first semester was 0.89. This means that the state-owned company's total current assets of Rp 107.37 trillion can only cover 89 percent of its total current liabilities of Rp 121.15 trillion. The ratio of operating cash flow to PLN's finance costs at the end of June 2017 was 1.35. This indicates that the company's operating cash flow of Rp 13.73 trillion was able to cover all debt and interest payments totaling Rp 10.2 trillion, with a buffer of Rp 3.3 trillion remaining for investment.