ESDM Allocates Rp 9.7 Trillion for Village Electricity in 2027

Indonesia's Ministry of Energy and Mineral Resources (ESDM) plans to allocate Rp 9.7 trillion in 2027 to develop electricity infrastructure in villages across the archipelago. This significant investment is part of a broader effort to achieve universal electrification, particularly in remote and underdeveloped areas.

Tri Winarno, Director General of Mineral and Coal and acting Director General of Electricity at the Ministry, detailed that the project will utilize a multi-year contract (MYC) scheme. For the 2026–2027 period, Rp 8.77 trillion is budgeted for 3,054 locations, while Rp 977.57 billion is allocated for 101 locations in the 2027–2028 period. Specific details on the number of households to benefit and priority regions were not immediately provided.

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For the MYC scheme 2026–2027 with a target of 3,054 locations, an amount of Rp 8.77 trillion is budgeted. Second, for the MYC scheme 2027–2028 with a target of 101 locations, Rp 977.57 billion is allocated.

This village electrification budget is a component of the Ministry's total indicative ceiling of Rp 27.33 trillion for the 2027 fiscal year. Approximately 82% of this total, or Rp 22.48 trillion, is earmarked for strategic programs and physical infrastructure projects directly impacting the public. Beyond village electrification, other initiatives include Rp 520 billion for the Electricity Connection Assistance Program (BPBL), targeting 250,000 new household connections.

Furthermore, the government is funding energy transition programs, allocating Rp 815 billion for converting stoves to electric models and Rp 635 billion for electric motorcycle conversions. Currently, around 8,000 villages or administrative areas below the village level still lack full electricity access. The government's target is to provide electricity to all these areas by 2029. Staf Ahli Menteri ESDM Bidang Perencanaan Strategis Jisman P Hutajulu noted that while 1,500 locations were electrified last year, the pace needs to accelerate significantly this year.

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There are still around 8,000 locations that have not yet received electricity access, and we must resolve this. Last year, around 1,500 locations were successfully electrified, and this year's implementation is targeted to be more massive.