Indonesian House Approves IDR 3 Trillion For PLN To Achieve 100% Electrification In Remote Areas

Commission VI of the Indonesian House of Representatives (DPR RI) has approved the proposed State Capital Participation (PMN) for PT PLN (Persero) amounting to IDR 3 trillion for the year 2025. This funding is allocated to support PLN’s efforts in achieving a 100% Electrification Ratio and Electrified Village Ratio (RDB), particularly in the Disadvantaged, Frontier, and Outermost (3T) regions.

Muhammad Sarmuji, a member of Commission VI and leader of the Working Meeting, expressed strong support for the allocation. “We fully support the strengthening of village electricity and the installation of electricity networks to remote areas,” Sarmuji stated.

Minister of State-Owned Enterprises Erick Thohir emphasized the broader economic benefits of this initiative. “We hope that this PMN can be right on target and provide more benefits for economic growth and policies that sustain overall growth,” Thohir said during the meeting at the DPR RI Building in Jakarta.

PLN President Director Darmawan Prasodjo reaffirmed the company’s commitment to providing electricity nationwide, including the 3T areas. “Electricity is a primary need for the community. Together with the Government, we will push for equal distribution of electricity to the 3T regions, in line with the 5th principle of Pancasila, to improve the welfare and quality of life for all Indonesians,” Darmawan declared.

Darmawan noted that PLN, in collaboration with the Ministry of Energy and Mineral Resources (ESDM), has developed a roadmap for the Village Electricity (Lisdes) program aimed at achieving a 100% Electrified Village Ratio. The proposed PMN allocation for 2025 will support the electrification of 85,000 customers in 1,092 villages.

“Despite challenges in accessibility, geography, and conditions prone to security and social conflict, PLN continues to strive to provide electricity to all corners of the country. The remaining Lisdes programs are in extreme areas that are increasingly difficult to reach,” Darmawan explained.

Darmawan also highlighted the integration of the Lisdes roadmap with geospatial maps through PLN’s digital transformation efforts. This integration ensures more measurable and targeted planning and execution.

“Communication with regional stakeholders is ongoing. Each General Manager meets with local governors, regents, DPRD, and other stakeholders to garner support, as this village electricity program is a state initiative. We are committed to ensuring that no one in our country lives in darkness,” Darmawan added.

Between 2015 and 2022, PLN successfully utilized IDR 49.81 trillion in PMN funds to develop electricity infrastructure, electrifying 7,980 villages and benefiting 1.37 million people across Indonesia. As of May 2024, the National Electrified Village Ratio stood at 99.87%. PLN is dedicated to fully utilizing PMN funds to achieve the 100% target.

“PMN is crucial for developing electricity infrastructure nationwide, contributing to social justice and energy independence. The presence of electricity in the regions will create a multiplier effect through increased labor absorption and real sector economic growth, driving local economic development,” Darmawan concluded.