PLN secures US$185 million in 2025 for electricity generation in remote areas
Published on 12/07/2024 at 05:33 GMT+7 Reading time
The House of Representatives (DPR) on Wednesday, July 10, 2024, approved a proposal for State Capital Injection in 2025 for State utility company PT PLN amounting to Rp3 trillion (US$185 million) to support the company’s 100 percent Electrification Ratio and Village Electricity Ratio (RDB) as part of its commitment on energy justice, particularly in Disadvantaged, Frontier, and Outermost (3T) regions.
"We (Commission VI of House of Representative) fully support the strengthening of village electricity, the installation of electricity networks to remote areas," Legislator Muhammad Sarmuji, who presided the hearing with Minister of State-owned Enterprises (SOEs), Erick Thohir, on Wednesday, said.
Erick expressed hope that through capital injection support, PLN and other state-owned companies can provide more benefits to national economic growth.
PLN President Director Darmawan Prasodjo said that PLN and the Ministry of Energy and Mineral Resources (ESDM) have compiled and agreed on a roadmap for the Village Electricity program to achieve a 100 percent PLN-Electrified Village Ratio. To support this target, PLN proposed a state capital injection allocation for the Village Electricity program in 2025 to electrify 85 thousand customers in 1,092 villages.
Darmawan said further that through PLN's digital transformation, the current Village Electricity roadmap has been integrated with geospatial maps, making the planning and execution of the program more measurable and right on target.
In the 2015-2022 period, PLN has absorbed state capital injection funds of Rp 49.81 trillion for electricity infrastructure development, one of which is to electrify 7,980 villages throughout Indonesia. Until May 2024, the achievement of the National Electrified Village Ratio (RDB) was at 99.87 percent.
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