Indonesia's Ministry of Energy and Mineral Resources managed to raise the nation's electrification ratio to 92.8 percent in the first half of 2017, hence achieving its target. The electrification ratio is the percentage of Indonesian households that are connected to the nation's electricity grid. The 92.8 percent ratio is a great improvement from 84 percent at the end of 2014, implying the Joko Widodo government performed well in this area. It targets for "near-universal" electricity access by 2020.
Andy Noorsaman Sommeng, Director General of Human Resources at the Energy Ministry, said the positive achievement in terms of electrification is the result of the government's successful efforts to add 1,361.6 MW to the installed capacity of the nation's power plants. "In terms of power plant development, the government has already achieved 50 percent of the 2017 target. Up to the present moment, the total installed capacity of these power plant is 14,193 MW," he said over the weekend.
Increased access to electricity (electrification) boosts electricity consumption. Currently, electricity consumption reached 978.75 kWh per capita, while the figure was 956.36 kWh per capita at the end of 2016.
However, in terms of investment value the government target has not been achieved. Nevertheless, Noorsaman Sommeng remains optimistic that the investment value target will be in line with the target at the end of the year.
Indonesia's electricity program is conducted through the synergy of the central government's State Budget (APBN), corporate social responsibility (CSR) programs of state-owned enterprises, and private parties' participation. Although with limited success, Indonesia is also eager to develop renewable energy sources to support sustainable energy.
A recent report from the Asian Development Bank (ADB) notes that the biggest challenge for a government is to connect the last 10 - 15 percent of the population to the electricity grid. Looking at examples in China, Mexico and Thailand, the ADB says it can take up to 20 years to advance the electrification ratio from 85 - 90 percent to 100 percent. Considering it involves more remote areas, the costs and technical difficulties rise accordingly.
Source: Indonesia Investment