Guarantee fulfill of electricity in Indonesia 2022

GUARANTEE FULFILLMENT OF ELECTRICITY NEEDS IN INDONESIA

The need for national electrical energy supply continues to increase every year and will continue to increase along with technological developments in Indonesia, and even the world. Technological developments that have begun to be applied in the business and household have significantly increased the demand for electricity. Therefore, the government is trying to distribute electricity to all regions in Indonesia in order to provide potential for the region to continue to grow.

ELECTRIFICATION RATIO AS AN INDICATOR OF ELECTRICITY DISTRIBUTION EQUALITY IN INDONESIA

The electrification ratio is the ratio of the number of electrified household customers from both PLN (State Electricity Company) and non-PLN electricity to the total number of households. Based on the distribution, in 2021 the electrification ratio reached 99.45% of the total households in Indonesia. An increase of 0.25 points compared to the previous year or 31% of the 2021 growth target.

Development of Electrification ration in Indonesia 2022

The target in 2022 is still the same as the previous year, which is to reach 100%, which means that electricity consumption is evenly distributed to households throughout Indonesia. The benefits of equitable distribution of electrical energy are increasing the quality of household life (especially in rural areas that lack electricity), including increasing industrial productivity, distribution of goods and services, improvement and improvement of public infrastructure, increasing employment opportunities, providing convenience in communicating and delivering information to households in rural areas, improving the quality of learning for young people in rural areas, and many other benefits.

GROWTH OF ELECTRICITY PRODUCTION CAPACITY IN INDONESIA

In 2021, it is estimated that there was an increase in the amount of electricity generated by 6.8%, from 275,599.80 GWh to 294,359.67 GWh (estimated). In 2021, there was a decrease in the number of additional production capacities in several new power plants as an efficiency measure to balance national consumption so as not to experience overproduction, as well as a decrease in the estimated growth of national electricity consumption from 6.4% to 4.9%.

Electricity Generated based on Yearly 2022

In the growth table above, it can be seen that there was a decrease in electricity consumption in 2020. The decrease was largely due to the poor economy as a result of the COVID-19 pandemic. This decrease is illustrated by the fall in the GDP growth rate in 2020 to -2.07% (y-o-y) or a decrease of 7.09 points compared to the previous year. In addition, the number of businessmen who went out of business caused the national electricity consumption to decline that year. Based on data from the Indonesian MSME Association (Akumindo), there was a decrease in the number of MSME businessmen by more than 50% where in 2019 the number of MSMEs was 64.7 million units, but after the pandemic it became around 34 million units. There are around 30 million MSME units that went out of business in 2020. Fortunately, in 2021 the national electricity consumption increased again along with the increase in national production activities.

ELECTRICITY DISTRIBUTION IN INDONESIA

Electricity distribution in Indonesia is grouped into 6 types of customers, including social, household, business, industrial, government buildings, and street lighting. Based on the portion, the largest electricity distribution is distributed to the household sector, which is 46% of the total distribution. Below is the distribution to the industrial sector with a share of 30%, business (18%), social (3%), government buildings (2%), and street lighting (2%).

Electricity distribution by customer group in 2022

Based on this portion, the magnitude of electricity distribution in the household and industrial sectors is the increase in electricity consumption in the agricultural industry and MSME sectors. These two sectors contributed to positive sales growth. Therefore, the high demand for electricity causes the household group and the industrial sector to be the groups that will be most affected if there are obstacles in the distribution of electricity.

Until last April 2022, the State Electricity Company (PLN) had recorded an increase in the use of electricity by the public to 88,803 GWh or grew by 8.62% compared to the same period in 2021. This figure is even higher than Indonesia’s economic growth in Q1/2022. which is 5.01% (year on year/yoy). Which means an increase in per capita consumption in early 2022. Based on the province, the highest electricity sales growth until April 2022 was in the provinces of Riau and Riau Islands, which reached 43.8% of national consumption. Followed by other provinces, namely Southeast Sulawesi, South Sulawesi, and West Sulawesi which reached 23.5%, followed by the Bangka Belitung region with a growth of 12.8% compared to last year. (Source: cnbcIndonesia)