Wednesday, 20 October 2021 | 14:09 WIB

Energy Ministry Encourages National Electrification, Providing Electricity in Outermost Areas

Illustration: Seminar on Indonesia Bright and Smart to the Corners of Country.

JAKARTA, NNC - The Ministry of Energy and Mineral Resources revealed it continues to encourage national electrification. One of them is through the issuance of regulation related to electricity supply on the outermost areas.

Director of Development of Electricity Program, Directorate General of Electricity Alihuddin Sitompul explained that in the regulation the private sector will be limited to building 50 megawatts (MW) of power capacity in particular area.

In addition, the private sector is only set to sell electricity in 2,519 villages that have not been powered by electricity.

"Later on it will be the same as miniature of PT PLN (Persero) [state electricity company]. So the electricity is generated by itself, distributed by itself, calculate its own profit and loss. Minister regulation has been in the legislation process in Ministry of Law, so the government has encouraged private, cooperative, regional enterprises [BUMD] to do business and play role in provision of small-scale electricity. With this we hope 2,500 villages can be electrified by 2019," he said in Jakarta, Thursday (12/14/2017).

Alihuddin added that the power plant being built should be limited because according to the direction of the National General Energy Plan (RUEN) and pursuing New and Renewable Energy (EBT) target of 25 percent towards the energy mix in 2025.

"The EBT portion should reach 25 percent by 2025. If the EBT portion is not reached, then the utilization of gas should be maximized, but for 2,500 villages, local energy use with hybrid scheme should take precedence," he continued.

"What we expect is how the electrification ratio can reach 97 percent in 2019," he said.