Erick Thohir asks PLN to make a breakthrough in energy transition: Darmawan Prasodjo replaces Zulkifli Zaini
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Investor Daily - Erick Thohir minta PLN buat terobosan transisi energi: Darmawan Prasodjo gantikan Zulkifli Zaini
07 December 2021
By Euis Rita Hartati and Rangga Prakoso
Jakarta – SOE (State-owned Enterprise) Minister, Erick Thohir, is asking the new President Director of PLN, Darmawan Prasodjo, to make a breakthrough so that the energy transition carried out by the SOE will not burden the state and citizens. PLN is also asked to continue transformation and improve their business model.
“I directed the president director to lead PLN in improving their business model and preparing a leaner and more effective PLN organisation," stated Erick Thohir when he was stating the decision letter from the General Meeting of Shareholders (GMS) of PT PLN (Persero) at PLN Head Office in Jakarta on Monday (6/12).
The 2021 PLN GMS decided to appoint Darmawan Prasodjo as the president director of PLN, replacing Zulkifli Zaini. This event was attended by SOE Deputy Minister I Pahala Nugraha Mansury, SOE Ministry Deputy, PLN board of commissioners, and all PLN directors.
According to the SOE Minister, Erick Thohir, challenges for PLN's transformation in the future are not only limited to improving PLN's finances, but also meeting demand for greener energy, digitalisation, services for citizens, and eco lifestyle.
"PLN needs to prepare to accelerate their business in the face of new trends, such as the electric vehicle ecosystem, and to collaborate with other parties regarding the electrifying lifestyle," he stated.
Erick also advised the new PLN president director to continue the transformation that had been carried out and to continue improving it.
"The energy transition carried out by PLN needs to make a breakthrough so that it does not burden the state and citizens," he asserted.
With sincerity
Erick Thohir explained, in managing a company, especially SOEs, a leader must wholeheartedly and sincerely provide responsibility.
"Because, after all, the position given to us is a mandate. The mandate to contribute as much as possible to the country and to have the largest social impact in the form of improvement of services to citizens," he explained.
He revealed that, Zulkifli Zaini, who had served as PLN’s president director since December 2019, das led the company that served the basic needs of all Indonesians wholeheartedly and sincerely.
"[His] sincerity in managing PLN to survive and to continue serving as well as easing the burden of poor and underprivileged citizens during the COVID-19 pandemic, shows that he understands the commitment he has made," stated Erick.
The SOE Minister stated that, in two years, PLN had improved its financial performance and had successfully booked a revenue of Rp345.5 trillion and a net profit of Rp5.99 trillion in 2020. PLN's profit rose by 39.3% compared to 2019. PLN also successfully reduced their debt ratio to Rp452.4 trillion.
Erick added that, under Zulkifli's leadership, transformative efforts were also carried out in parallel as one of the efforts of the National Economic Recovery (PEN) program during the COVID-19 pandemic. PLN's contribution through electricity discounts with a target of 31.4 million households in 2020 and 32.6 million households in 2021 has helped maintain economic and social stability in the community.
"I am greatly thankful for the commitments that have been given so far. I believe the best track record that has been reported will become a legacy and a foundation for the next leader," he stated.
Zulkifli Zaini, in his speech, expressed his gratitude for the support that has been given by all parties during his tenure as director of PLN.
"Thank you for trusting me as the president director of PLN, an SOE with assets of Rp1,600 trillion. The extraordinary support from the SOE minister and vice minister, the board of commissioners, and other stakeholders that helped overcome the challenge of lighting up the country from Sabang to Merauke, from Miangas to Rote Island," stated Zulkifli.
Special task
At a press conference, Darmawan Prasodjo revealed several special tasks that were mandated by the SOEs Minister, Erick Thohir. The first task is the oversupply condition. "PLN is experiencing an oversupply. This condition must be resolved properly," stated Darmawan, who previously served as PLN’s deputy president director.
According to Darmawan, PLN has prepared a number of steps to increase electricity consumption, including encouraging the use of induction cookers and the use of electricity in the agriculture sector.
"To increase electricity consumption in the industrial sector, companies that use captive power or independent power plants will switch to using PLN electricity," he stated.
Darmawan admits that electricity consumption is increasing along with the trend of using battery-based electric vehicles. PLN responded to this by providing electric vehicle charging stations (SPKLUs) to support the electric vehicle ecosystem.
Furthermore, he stated that PLN also gave opportunities for business entities to work on SPKLUs. In fact, PLN is collaborating with banks regarding SPKLU investment funding. Charging electric vehicles can also be done independently at home.
Darmawan Prasodjo emphasised that PLN would expand electric vehicles and encourage the electrifying lifestyle. Electric vehicle usage will not only increase national electricity consumption, but also increase public efficiency in terms of energy expenditure.
As an example, he stated that, with 1 kwh of electricity worth Rp1,444.7, drivers can travel 10 km. Meanwhile, fossil fuel-based vehicles require 1 litre of gasoline worth Rp9,000 for the same mileage. "This step will also have a positive impact on trade balance because crude oil imports are reduced," he stated.
Apart from that, PLN is increasingly focusing on intensifying electrification programs in the agriculture sector by targeting farmers. Through this program, PLN replaces agriculture and fishery operational equipment and fish farmers from diesel-based to electricity-based.
"Farmers have become more efficient. The equipment is also much quieter and can increase the farmers’ productivity," he stated.
On the other hand, Darmawan Prasodjo stated that PLN is also targeting a captive market. So far, many industries use their own power plants. PLN is offering industries to switch to PLN electricity to be more efficient in terms of operation.
"By relying on electricity supply from PLN, industries can focus more on optimising production and utilities," stated Darmawan.
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