To restore financial viability and to satisfy the need for electricity stand as the critical issues of PLN that need to be solved. Under serious financial problem of PLN, it is almost impossible to implement the investment plans that have been established and identified if primary funding resource relies solely to its internal cash generation. PLN can technically be considered in bankruptcy. Equity to assets ratio has fallen to about -3 % and the cost of debt has reached about 59 % of the revenue. There is a slight tariff level improvement since the GOI has agreed to raise the average retail tariff in April 2000. Eventually the average retail tariff has reached about 28 % more than the average retail tariff in 1999; conversely the average retail tariff in US dollar decreased almost constantly.