Indonesia's state utility cuts 2020 revenue target by nearly 15% on coronavirus woes

PLN - JAKARTA. Indonesia's state electricity company, Perusahaan Listrik Negara (PLN) cut its 2020 revenue target because the coronavirus outbreak is expected to cut power demand, Chief Executive Officer Zulkifli Zaini told parliament on Wednesday.

PLN estimates its revenue this year to drop to 257 trillion rupiah ($64.60 million), down 14.6% from its initial target of 301 trillion rupiah.

"Our initial estimate was for our operating income to be at 301 trillion rupiah but with a 9.7% decrease in demand, that becomes 257 trillion rupiah," Zulkifli said, adding that for every 1% drop in electricity demand, PLN's revenue will fall 2.8 trillion rupiah.

Electricity demand in the world's fourth most populous country has declined because of efforts to curtail the spread of the coronavirus that has shuttered some businesses and required residents to stay indoors.

Zulkifli also told parliament on Wednesday that PLN will postpone projects that have not received funding but will continue with those which have securing financing.

Earlier this month, Indonesia said that it estimates electricity subsidies this year will rise to 59.4 trillion rupiah from 54.8 trillion rupiah budgeted originally. Last year, PLN received 52.7 trillion rupiah.

The government announced a $24.9 billion stimulus package last month in response to the COVID-19 outbreak that included electricity discounts and waivers.

($1 = 15,480.0000 rupiah)