Following PLN company policy to pursue a more aggressive approach to collect overdue bills, the PLN imposed a blackout on street lamps in Surakarta just before Christmas 2011. Not long afterwards, the PLN was involved in an incident in the Central Java city of Surakarta where the municipality had overdue bills owing of close to $1 million (Rp 8.9 billion) to the PLN.In Banyumas, consumers complained that the PLN's efforts to improve debt collection were unfair and failed to reflect the social obligations expected of state-owned enterprises. But the PLN's efforts to improve debt collection, both in Banyumas and in many other areas of Indonesia, often meet with considerable consumer resistance. Of the customers in arrears, 13,000 were considered very bad customers and were targeted for disconnection. As just one example, in the Banyumas district ( kabupaten) of Central Java in late 2011, it was reported that 60 percent (over 80,000) of the PLN's 140,000 customers in the area were overdue with payments for their electricity bills causing the company over $300,000 in losses each month.The cash flows of the company are often weighed down with overdue debts from consumers. For another thing, there is widespread consumer resistance to payment of electricity bills. For one thing, government-regulated tariffs are often too low to cover operational costs and have not been set at a level sufficient to make a reasonable contribution towards capital costs for many years. The PLN has-and has had, for many years-considerable trouble with internal revenue flows.
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