The Indonesian government is embarking on an ambitious initiative to electrify 5,700 villages and 4,400 sub-districts across the archipelago by 2030, as announced by Minister of Energy and Mineral Resources Bahlil Lahadalia following a closed-door meeting with President Prabowo Subianto at the Presidential Palace in Jakarta. This undertaking underscores the administration’s commitment to expanding access to electricity, particularly for underserved communities, and fostering inclusive economic growth.
The announcement came after a series of high-level discussions led by President Prabowo, involving key members of the "Red and White Cabinet." The meetings centered on reviewing government programs slated for completion by 2025 and strategizing for future economic development in the years that follow. Minister Bahlil emphasized the urgency of the electrification project, stating that it is a priority to ensure that all regions of Indonesia have access to reliable power.
"We discussed the economy and pending programs for 2025 that need to be completed. Then we talked about economic prospects for 2026. From the energy side, we will try to electrify 5,700 villages and 4,400 sub-districts that remain without access to electricity. This must be completed by 2029–2030," Minister Bahlil told reporters.
The scale of this electrification endeavor is significant, reflecting the government’s determination to address the disparities in energy access that persist across the nation. Many remote and rural areas of Indonesia still rely on traditional sources of energy, such as kerosene lamps and wood-burning stoves, which are not only inefficient but also pose health and environmental hazards. By extending the electricity grid to these communities, the government aims to improve the quality of life for millions of Indonesians, create new economic opportunities, and promote sustainable development.
The budgetary implications of this massive electrification project are substantial, and the government is currently finalizing the financial details. Minister Bahlil assured the public that the necessary allocations for the village and sub-district electrification program have been incorporated into the draft state budget for 2026. This commitment demonstrates the government’s resolve to prioritize this initiative and allocate the resources needed to ensure its successful implementation.
"The budget has been included in the state budget because this is a public service. Why? We reported to the President that this concerns low-income communities. It cannot be calculated solely in economic terms because it requires the presence of the state. The President instructed it, and it has been directly budgeted," Minister Bahlil explained.
The government’s rationale for prioritizing rural electrification extends beyond purely economic considerations. Providing electricity to remote villages and sub-districts is viewed as a fundamental public service, essential for improving the living standards of low-income communities. Access to electricity can power homes, schools, and hospitals, enabling children to study at night, providing access to healthcare services, and facilitating the growth of small businesses. Furthermore, electrification can help to reduce reliance on fossil fuels, promoting cleaner energy sources and mitigating the impacts of climate change.
In addition to the electrification initiative, Minister Bahlil announced that the distribution of 3-kilogram LPG cylinders, a subsidized cooking gas, will be based on the national identification number (NIK) starting next year. This measure aims to ensure that subsidies are targeted to those who need them most, preventing wealthier individuals from benefiting from the program.
"Yes, next year it will use NIK. So, you should not use the 3-kilogram LPG. For the upper-income groups, I believe they will have the awareness not to purchase subsidized gas cylinders," he said.
The use of NIK for LPG distribution is part of a broader effort to improve the efficiency and effectiveness of government subsidy programs. By linking subsidies to individual identification numbers, the government can better track who is receiving assistance and prevent fraud and abuse. This will help to ensure that limited resources are directed to those who are truly in need, maximizing the impact of government spending.
President Prabowo’s meetings with his ministers also included discussions on other key economic priorities, such as boosting economic growth and ensuring food security. The President met with Coordinating Minister for Economic Affairs Airlangga Hartarto, Coordinating Minister for Food Affairs Zulkifli Hasan, and Minister of Energy and Mineral Resources Bahlil Lahadalia to review their progress and discuss strategies for achieving these goals.
The government’s focus on economic development reflects a recognition that Indonesia needs to create more jobs and opportunities for its growing population. By investing in infrastructure, promoting entrepreneurship, and improving the business climate, the government hopes to attract foreign investment and stimulate economic growth.
The electrification initiative is an integral part of this broader economic development strategy. By providing access to electricity, the government can unlock the economic potential of rural areas, creating new opportunities for businesses and entrepreneurs. Electricity can power factories, workshops, and other businesses, enabling them to increase production and create jobs. It can also support the development of tourism and other industries, bringing new sources of income to rural communities.
The Indonesian government faces significant challenges in implementing its ambitious electrification plan. Many of the villages and sub-districts that need to be electrified are located in remote and isolated areas, making it difficult and expensive to extend the electricity grid. The government will need to work closely with local communities to overcome these challenges and ensure that the electrification projects are successful.
In addition, the government will need to secure the necessary financing to fund the electrification projects. This will require a combination of public and private investment. The government may also need to seek assistance from international organizations and development partners.
Despite these challenges, the Indonesian government is committed to achieving its goal of electrifying all villages and sub-districts by 2030. This ambitious undertaking reflects the government’s determination to improve the lives of all Indonesians and create a more prosperous and equitable society. The project will require careful planning, effective implementation, and strong partnerships between the government, the private sector, and local communities. If successful, it will have a transformative impact on the lives of millions of Indonesians, opening up new opportunities and driving economic growth across the archipelago. The commitment to electrifying these communities signifies not just an infrastructure project, but a dedication to equitable development and the empowerment of underserved populations, paving the way for a brighter future for all Indonesians. The ripple effects of this initiative will be felt across sectors, from education and healthcare to agriculture and small business development, fostering a more resilient and prosperous nation.