PROFIT MARGIN AND SUBSIDY ANALYSIS FOR PT. PLN (PERSERO) ELECTRICITY SUPPLY SUSTAINABILITY

• Main Author: CAHYO ASTORO (NIM: 29107155), SIGIT
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/14495
• Institution: Institut Teknologi Bandung

Electricity selling price in Indonesia are regulated by the Government, and the Government's Policy not to increase the Electricity Basic Tariff since 2004 has caused lower electricity sales compared to the operation cost, therefore increasing the company magnitude and dependency on subsidy from the Government.<p>The funding for investment which expectantly received from the economic scale of Electricity Basic Tariff was not meet, because the Government decided not to increase the Electricity Basic Tariff due to the low purchasing rate of the society. Subsidy becomes the main key in PLN's Business, but subsidy what is received by PLN still cannot cover the cost plus the expected margin.<p>Therefore to secure electricity supply for the public and to fulfill the increasing demand of electrical energy on the next decade, PLN need investment to increase the capacity of the generator and the transmission network for electricity supply sustainability. And to survive, PLN must find strategy to increase its profitability.<p>This research is using quantitative method and using pro forma analysis to find the suitable tariff, profit margin and subsidy projection to be applied by PT. PLN (Persero) for electricity supply sustainability until next ten years based on previous five years company's financial performance.<p>The results of the analysis in this research show that the government policy in determining electricity subsidy, tariff and margin are still the main keys for PT. PLN (Persero) Electricity Supply Sustainability and predicted will remains for the next upcoming years. <br />