Electrification Ratio Indonesia Rose to 92.8% in H1-2017

Electrification Ratio Indonesia Rose to 92.8% in H1-2017

The Ministry of Energy and Mineral Resources said Indonesia 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.

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Link to Original Article:
https://www.indonesia-investments.com/news/todays-headlines/electrification-
ratio-indonesia-rose-to-92.8-in-h1-2017/item8067

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com