ALTERNATIF PENYELESAIAN TUNGGAKAN PENERUSAN PINJAMAN LUAR NEGERI PT PLN (PERSERO)

• Main Author: HAMDANI, YUSUF
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/9729
• Institution: Institut Teknologi Bandung

PLN is one of the companies that experience problems due to the deterioration of the Rupiah against the US Dollar. as all of its income is in Rupiah, while its expenses to generate electrical power are mainly in foreign currencies. The June 30, 2000 financial report shows current equity of Rp 1.9 trillion. which is extremely lower than the pre-crisis equity value of Rp 30 trillion. This decline is a result of huge losses that have occurred since 1998. Without reorganization of balance sheet. the equity value of PLN is estimated to be negative Rp 8.448 trillion as per December 31, 2000.<p>The majority of electric power generation components are imported and paid through foreign loans. The Department of Finance forwards the loans to PLN through SLAs (Subsidiary Loan Agreement). Within the loan portfolio there are 8 SLAs with interest formulated such that annual interest results 1800/0 each year between 1998-2000. and another 27 SLAs in foreign currencies. These two SLA groups are the reason for PLN's high non-operating cost which caused arrears in debt service since January L` 1998 in the amount of Rp 34.212 trillion. PLN's proposal to the Finance Minister since December 24, 1998 on loan restructuring, has not yet received a response. <br /> <br /> This thesis discuss about the selection process of six debt restructuring solution alternatives. Criterias used in the selection are the share value, the impact of tariff increase. and the additional subsidy required.<p>The findings result in the recommendation to the creditor (MOF) to approve Alternative-3 which converts the arrears amount of Rp 15,354 billion into equity; write-off over-charged arrears to PLN the amount of Rp 18.858 billion and revised interest formula of eight depreciation based SLA's as mentioned in formula (4.1). Interest formula revision is needed to pass thru the currency risk from MOF to PLN with the correct formula. Asset revaluation as well as debt restructuring are among the Financial Restructuring Program which result in the earlier improvement of PLN financial condition. The keys to longterm resolution of PLN financial crisis are tariff increase and IPP's PPA resolution.