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    Achieving Universal Electricity Access in Indonesia
    Achieving Universal Electricity Access in Indonesia
    Achieving Universal Electricity Access in Indonesia
    Ebook246 pages2 hours

    Achieving Universal Electricity Access in Indonesia

    By Asian Development Bank

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    About this ebook

    Indonesia has achieved an impressive 84% electrification ratio, but faces significant challenges in reaching the remaining 16% of its households. This report describes Indonesia’s electrification environment and identifies barriers to achieving universal electricity access. Principles drawn from international best practices such as government commitment, enabling institutional environments, adequate and sustainable financing, and stakeholder coordination are discussed in the context of Indonesia’s energy sector. The report gives recommendations for establishing service standards, streamlining financing, setting appropriate targets, and monitoring and evaluation, as well as near-term steps to help achieve universal electricity access.
    LanguageEnglish
    PublisherAsian Development Bank
    Release dateMar 1, 2016
    ISBN9789292572693
    Achieving Universal Electricity Access in Indonesia

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      Book preview

      Achieving Universal Electricity Access in Indonesia - Asian Development Bank

      ACHIEVING UNIVERSAL ELECTRICITY ACCESS IN INDONESIA

      Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)

      © 2016 Asian Development Bank

      6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines

      Tel +63 2 632 4444; Fax +63 2 636 2444

      www.adb.org; openaccess.adb.org

      Some rights reserved. Published in 2016.

      Printed in the Philippines.

      ISBN 978-92-9257-268-6 (Print), 978-92-9257-269-3 (e-ISBN)

      Publication Stock No. RPT167922

      Cataloging-In-Publication Data

      Asian Development Bank.

      Achieving universal electricity access in Indonesia.

      Mandaluyong City, Philippines: Asian Development Bank, 2016.

      1. Electrification.    2. Energy access.    3. Indonesia.    I. Asian Development Bank.

      The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.

      ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned.

      By making any designation of or reference to a particular territory or geographic area, or by using the term country in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.

      This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of said license as well as the Terms of Use of the ADB Open Access Repository at openaccess.adb.org/termsofuse

      This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any claims that arise as a result of your use of the material.

      Attribution—In acknowledging ADB as the source, please be sure to include all of the following information:

      Author. Year of publication. Title of the material. © Asian Development Bank [and/or Publisher]. https://openaccess.adb.org. Available under a CC BY 3.0 IGO license.

      Translations—Any translations you create should carry the following disclaimer:

      Originally published by the Asian Development Bank in English under the title [title] © [Year of publication] Asian Development Bank. All rights reserved. The quality of this translation and its coherence with the original text is the sole responsibility of the [translator]. The English original of this work is the only official version.

      Adaptations—Any adaptations you create should carry the following disclaimer:

      This is an adaptation of an original Work © Asian Development Bank [Year]. The views expressed here are those of the authors and do not necessarily reflect the views and policies of ADB or its Board of Governors or the governments they represent. ADB does not endorse this work or guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use.

      Please contact OARsupport@adb.org or publications@adb.org if you have questions or comments with respect to content, or if you wish to obtain copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB logo.

      Note: In this publication, $ refers to US dollars.

      Contents

      Boxes, Figures, and Tables

      BOXES

      FIGURES

      TABLES

      Acknowledgments

      This report was prepared under a technical assistance grant (Technical Assistance No. 8287-INO: Scaling Up Renewable Energy Access in Eastern Indonesia) administered by the Asian Development Bank (ADB) with grant-based financing from the Multi-Donor Clean Energy Fund under the Clean Energy Financing Partnership Facility (CEFPF), and additional financial support from the Government of Norway. The report was prepared under TA-8287 by Castlerock Consulting.

      Work on this report began in early 2014 and continued through several iterations building on reviewer inputs, findings from work on the Sumba Iconic Island initiative, and, in general, the evolving situation in Indonesia. This report draws on these findings and work related to the Sumba Iconic Island initiative to review electrification mechanisms and efforts at a national level, with the aim of identifying specific measures to help Indonesia achieve universal electricity access.

      This study was conducted by Castlerock Consulting under the technical supervision of Pradeep Tharakan, senior energy specialist (Climate Change), and Chong Chi Nai, director, Energy Division, Southeast Asia Department of ADB. The report team gratefully acknowledges the inputs and support provided by Rida Mulyana, director general for New and Renewable Energy and Energy Conservation, Ministry of Energy and Mineral Resources; Dadan Kusdiana, former director of Bioenergy and currently head of the Public Communication Center of the Ministry of Energy and Mineral Resources; staff members from the Directorate General of New and Renewable Energy and Energy Conservation; personnel from the Directorate General of Electricity and the State Electricity Company (PLN), who provided guidance on prevailing electrification and subsidy mechanisms, especially Benhur Tobing, Zaenul Arief, and Wanhar; counterparts in the Mining & Energy Services and the Regional Development Planning Agencies within the four districts (kabupaten) of Sumba. The team also wishes to thank Arun Sanghvi who, as an advisor to ADB, reviewed and helped guide the preparation of the report.

      Abbreviations

      WEIGHTS AND MEASURES

      Executive Summary

      ES.1 Current Situation

      Indonesia has achieved remarkable success in bringing electricity to its people. Despite being an archipelagic nation of some 17,000 islands spanning 5,000 km, Indonesia had attained an 84% electrification ratio¹ by the end of 2014. In the past 10 years alone, the State Electricity Company (PLN), the national electric utility, has managed to connect approximately 20 million households, or some 78 million people. In 2013 alone, PLN connected 3.7 million new consumers.

      Given the benefits of electrification, the government aims for near-universal access by 2020. The National Energy Policy (Kebijakan Energi Nasional, KEN) adopted in 2014 states that Indonesia should approach 100% electrification ratio by 2020. Meanwhile, the 2015-2019 National Medium Term Development Plan (Rencana Pembangunan Jangka Menengah Nasional, RPJMN) targets an electrification

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