Janeman Latul

Falling oil prices helped PLN turn a profit. (Antara Photo/Andika Wahyu)

PLN’s Surprise Profit Boosts Performance of SOEs in a Tough Year

The State-Owned Enterprise Ministry revealed on Monday that net profits from state-owned companies in the energy, mining, telecoms and strategic industries rose by 16.4 percent last year.

State firms in those sectors posted earnings of Rp 42.6 trillion ($4.5 billion) in 2009, compared with Rp 36.6 trillion in 2008.

Those sectors together accounted for more than 44 percent of SOE earnings.

The improving figures, achieved during a difficult year, were mainly due to the performance of state electricity company PT Perusahaan Listrik Negara.

PLN recorded a rare profit last year of Rp 6.6 trillion, after suffering a record loss of Rp 12.3 trillion in 2008.

Many other commodity-based state-owned companies suffered significant setbacks as global commodity prices plunged because of the financial crisis.

“PLN’s turnaround from a record loss to profit last year was the main driver of SOE earnings despite commodity prices falling in the first half,” said Sahala Lumban Gaol, the State-Owned Enterprise Ministry’s deputy in charge of energy, mining, telecoms and strategic industries.

Sahala was speaking at a hearing with House of Representatives Commission VI, which oversees state enterprises.

Sahala told the commission that the energy sector was the main contributor to SOE earnings, despite oil and gas company PT Pertamina’s annual profit falling 49 percent in 2009 to Rp 15.3 trillion.

Meanwhile, state gas company PT Perusahaan Gas Negara posted a net profit of Rp 4.4 trillion in the first three quarters of last year, compared with just Rp 633.8 billion in all of 2008.

PGN president director Hendi Prio Santoso confirmed last week that the company would generate a net profit of more than Rp 5 trillion in 2009, largely due to a significant increase in gas sales.

Purbaya Yudhi Sadewa, a senior economist at the state-owned Danareksa Research Institute, told the Jakarta Globe that PLN’s stellar profits saved the SOEs from a bad year in 2009.

“PLN could book a profit only because of falling oil prices and the fact that it achieved major efficiencies in some of its power plants,” Purbaya said. “Now the oil price is still under $100 per barrel while PLN’s tariff has not been reduced. It surely affected its books.”

State-owned miners were among those who suffered last year. They are expected to post moderate declines in combined earnings due to lower nickel and tin prices in 2009.

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