Indonesia allocates Rp9.7 trillion for village electrification in 2027

Jakarta (ANTARA) - Indonesia's Ministry of Energy and Mineral Resources will allocate Rp9.7 trillion (approximately US$548 million) in 2027 to expand electricity access to villages, supporting the government's goal of nationwide electrification by 2029.

Director General of Mineral and Coal and Acting Director General of Electricity Tri Winarno announced the funding during a parliamentary hearing on the ministry's 2027 budget and work plan on Monday.

The village electrification program will be implemented through multiyear contracts to accelerate infrastructure development across underserved regions.

"For the 2026-2027 multiyear contract scheme targeting 3,054 locations, Rp8.77 trillion (US$495.6 million) has been allocated. For the 2027-2028 scheme covering 101 locations, Rp977.57 billion (US$55.2 million) has been allocated," Winarno said.

He did not specify the number of households expected to receive electricity or identify priority regions for the projects.

The village electrification budget is part of the ministry's 2027 indicative spending ceiling of Rp27.33 trillion (US$1.54 billion), which was set jointly by the Ministry of Finance and the Ministry of National Development Planning.

Winarno said 82 percent of the total budget, or Rp22.48 trillion (US$1.27 billion), would be directed toward strategic programs and physical infrastructure projects with direct public benefits, including rural electricity development.

The 2027 infrastructure budget also includes Rp520 billion (US$29.3 million) for the New Electricity Installation Assistance Program, targeting 250,000 household connections.

The government has also earmarked Rp815 billion (US$46.1 million) for electric stove conversion and Rp635 billion (US$35.9 million) for electric motorcycle conversion programs as part of its energy transition strategy.

According to the ministry, around 8,000 villages and smaller settlements across Indonesia still lack full access to electricity, with most located in remote and isolated areas.

The government aims to provide electricity to all of those locations by 2029.

"There are still around 8,000 locations without electricity access, and we must resolve this. Last year about 1,500 locations were electrified, and this year's implementation is targeted to be even more extensive," Senior Advisor to the Minister of Energy and Mineral Resources for Strategic Planning Jisman P. Hutajulu said.

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Translator: Shofi Ayudiana, Martha Herlinawati Simanjuntak

Editor: Arie Novarina

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