Indonesian state-owned power company Perusahaan Listrik Negara (PLN) has denied claims that mismanagement in running and investing in power plant projects led to IDR 6 trillion (€505 million) in losses for the group.

The Working Group on Power Sector Restructuring has reportedly said that corruption and inefficiency at PLN led to the losses. The Working Group said previously that new power plant projects might produce losses of IDR 6.29 trillion (€530 million) due to inefficient management.

Meanwhile, a pending electricity crisis is forcing PLN to develop new power plants. Several plants are under development and are expected to begin operations by early 2006. Among these facilities are Cilegon, Cilacap, and Tanjung Jati B.