ESDM Ministry Allocates Rp9.7 Trillion for Village Electrification in 2027

The Ministry of Energy and Mineral Resources (ESDM) has allocated a budget of Rp9.7 trillion for 2027 specifically for the construction of village electricity infrastructure across various regions of Indonesia. Director General of Minerals and Coal, who is also Acting Director General of Electricity at the ESDM Ministry, Tri Winarno, stated that the project to fulfil the village electrification ratio will be carried out using a multi-year contract (MYC) scheme. “For the 2026–2027 MYC scheme targeting 3,054 locations, a budget of Rp8.77 trillion has been allocated. Secondly, for the 2027–2028 MYC scheme targeting 101 locations, Rp977.57 billion has been allocated,” Tri said during a hearing with Commission XII on the discussion of the 2027 Ministry/Agency Work Plan and Budget in Jakarta on Monday. However, Tri did not provide further details regarding the target number of households that will benefit from the village electricity supply, nor the distribution of priority development areas in the field. The budget for village electricity is part of the ESDM Ministry’s total Indicative Ceiling for the 2027 Fiscal Year, set at Rp27.33 trillion, based on a joint letter from the Minister of Finance and the Minister of National Development Planning/Head of Bappenas. Tri explained that 82 percent of the total ceiling, amounting to Rp22.48 trillion, is prioritised for spending on strategic programmes and physical infrastructure that directly impact the wider community, including village electrification projects. In addition to village electricity, the portion of strategic infrastructure spending for FY 2027 is also allocated to other public electricity programmes, including the New Electricity Installation Assistance (BPBL) programme amounting to Rp520 billion for a target of 250,000 household connections. The government has also budgeted funds for financing the energy transition programme, namely the conversion to electric stoves amounting to Rp815 billion and the conversion to electric motorcycles with an allocation of Rp635 billion. The ESDM Ministry noted that there are currently around 8,000 locations, both villages and sub-village areas, that are not yet fully electrified. These unreached areas are generally located in remote regions and village outskirts. The government is targeting all these areas to be electrified by 2029 at the latest. “There are still around 8,000 locations that have not yet received electricity access and this must be resolved. Last year, around 1,500 locations were successfully electrified, and this year the implementation is targeted to be more massive,” said ESDM Minister’s Expert Staff for Strategic Planning, Jisman P. Hutajulu.