Statement of PPIP and SPPJB on PT PLN (Persero)’s Subholding Formation

Persatuan Pegawai PT Indonesia Power (PPIP) represented by its chairperson, Dwi Hantoro Sutomo, and the secretary, Andy Wijaya, and the Serikat Pekerja PT Pembangkitan Jawa-Bali (SPPJB) represented by Agus Wibawa, the chairperson, and Ide Bagus Hapsara, the general secretary, gave a statement related to the launching of PLN (Persero)’s subholding formation on September 21, 2022

The news said that the Ministry of State-Owned Companies (BUMN) has officially established the Holding dor PLN (Persero)’s subholding. This corporate action resulted in the consolidation of PLN’s generation assets to be into two Subholding Generation Companies (Genco) i.e. PLN Indonesia Power (Genco 1) and PLN Nusantara Power (Genco 2).

This corporate act has caused the consolidation of PLN’s generation assets. PT PLN Indonesia Power which was known as Indonesia Power will manage 20.6 GW generation facilities. This subhodling will be the biggest electricity generation company in SouthEast Asia.

Previously, the President Director of PLN, Darmawan Prasodjo, said that the restructurization is a strategic step to adapt to future changes. Moreover, he added, the company’s target is 22.9 GW of generation facilities up to 2025.

To accelerate the transition to clean energy, PLN Indonesia Power as a generation subholding company will have subsidiaries. A subsidiary will focus on Geothermal (Geothermal Co) with capacity of 0.6 GW and a renewable energy generator, such as solar generator, wind, or hydro – generator (New Energy Co) with capacity of 3.8 GW).

In the video, the Union (Serikat Pekerja PT Pembangkitan Jawa Bali and Persatuan Pegawai PT Indonesia Power) responding the formation of PT PLN (Persero) Subholding stated the following:

First, the formation of Geothermal Co. and New Energy Co. each of which the subsidiary of PT PLN Indonesia Power and PT PLN Nusantara Power shows that the Sate no longer control the sectors of production which are important for the country. It is also inconstitutional by violating the Constitutional Court decision No. 111/PUU-XIII/2015 and No. 61/PUU-XVIII/2020.

Sectors of production which are important for the country and affect the life of the people shall be under the powers of the State.

Second, the formation of Geothermal Co. and Energy Co. is the a form of government’s authority abuse to PT PLN (Persero) under the pretext of energy transition.

Third, Persatuan Pegawai PT Indonesia Power (PPIP) and Serikat Pekerja PT. Pembangkitan Jawa Bali SP PJB have sent two letters to the majority shareholders i.e. PT PLN (Persero) President Director, to question the formation of Goethermal Co. and New Energy Co.. However, up to this date, there has not any good will at all and allegedly it is the violation of article 126 of Perseroan Law.

Fourth, asset transfer from PT PLN (Persero), a State-Owned Enterprise, to new entities whose share are now owned by the State (Geothermal Co. and New Energy Co.) can be considered as hidden privatization.

Based on the above points, the following is our statement:

  1. We reject the establishement of PT PLN (persero) Subholding, especially the joint-subsidiaries, i.e. Geothermal Co and New Energy Co.. This is a form removal of State’s control over national electricty/energy sector.
  2. We request PT PLN (Persero) to take over the role and resposibility directly in the transition process to new and renewable without having to transfer the assets to other business entities by creating subholding (the Geothermal Co. and Energy Co).
  3. We request to the majority shareholder of PT Indonesia Power and PT Pembangkitan Jawa Bali to comply with and obey the article 26 of Law on Limited Company (Perseroan Terbatas) during the process of subholding formation of PT PLN (Persero)

Video Statement: https://videopress.com/v/DDhhEPo2

Thank you,

PPIP Chairperson, Dwi Hantoro Sutomo: 0812-8643-9018
SPPJB Chairperson, Agus Wibawa: 0896-8750-0696
PPIP General Secretary Andy Wijaya: 0813-1115-1305
SPPJB General Secretary, Ide Bagus Hapsara: 0857-3102-0947

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