Labor Union Rejects Establishment of PLN Subholding

Jakarta, CNN Indonesia

The Employees Union of PT Indonesia Power (PPIP) and the Workers Union of PT Pembangkitan Jawa-Bali (SPPJB) rejected the establishment of a subholding PT PLN (Persero) which was launched by the Minister of SOEs Erick Thohir on Wednesday (21/9)

The formation of a subholding, according to them, will consolidate all PLN’s generating assets into two Subholding Generation Companies (Genco), namely PLN Indonesia Power (Genco 1) and PLN Nusantara Power (Genco 2).

“We hereby reject the establishment of a PLN subholding if there is still a joint subsidiary structure, namely geothermal.co and new energy.co because it causes the loss of state control in the national electricity sector,” wrote PPIP and SPPJB in an official statement, Friday (23/23). 9).

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This is because the union views the formation of geothermal.co and new energy.co which are joint subsidiaries of PLN Indonesia Power and PLN Nusantara Power as real examples of the loss of state control and a form of constitutional violation, namely violating the Constitutional Court’s decision no. 111/PUU-XIII/2015 and the decision of the Constitutional Court No. 61/PUU-XVIII/2020.

In addition, the formation of geothermal.co and new energy.co is seen as a form of diversion from the government’s duties to PLN in fulfilling the energy transition.

Then, the unions are said to have sent two letters to the President Director of PLN questioning the formation of geothermal.co and new energy.co. However, so far there has been no response.

“We ask PLN to take direct roles and responsibilities in the transition of new and renewable energy without transferring to entities under subholding (geothermal.co and new energy.co),” the statement said.

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Furthermore, the union also asked the majority shareholder of PT. Indonesia Power and PT. Generation of Java and Bali to comply with Article 126 of the Limited Liability Company Law in the process of establishing a PLN subholding.

[Gambas:Video CNN]

(ldy/sfr)

[Gambas:Video CNN]


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