Indonesia Electricity Divide: Urban Boom vs. Remote Area Blackouts

Jakarta, April 2025 – While Indonesia has made significant progress in electrification, stark disparities persist between urban centers and remote regions. Reports from PLN (State Electricity Company), the Ministry of Energy, and the World Bank highlight an uneven energy landscape, reliable power in cities, but frequent blackouts and limited access in rural and frontier areas.

Current Status of Electricity Access in Indonesia

1. National Electrification: High Coverage, But Gaps Remain

• Ministry of Energy (2024): 99.2% electrification rate (up from 84% in 2017), but remote regions still lag.
• World Bank (2023): Over 500,000 households (mostly in Papua, East Nusa Tenggara, and Maluku) lack electricity.

2. Urban vs. Rural Disparities

PLN Data (2024):

• Java-Bali: 99.9% coverage, 24/7 supply.
• Eastern Indonesia (Papua, NTT): Frequent 12+ hour daily blackouts; some villages rely on diesel generators.
• IESR (2023 Report): 80% of urban households enjoy stable voltage, while 40% of rural users face daily fluctuations.

3. Energy Poverty in Remote Areas

• UNICEF (2024): 1 in 5 schools in Eastern Indonesia has no electricity, hindering digital education.
• Kompas Investigation (June 2024): Villages in Alor (NTT) use kerosene lamps, exposing children to respiratory risks.

 

Key Challenges

• High Infrastructure Costs: Extending grids to remote islands costs 5x more than urban projects (World Bank).
• Dependence on Fossil Fuels: Coal still dominates (62% of energy mix), despite pollution and cost volatility.

 

The Road Ahead

• Urgent Need: $3 billion/year to close the gap (IESR estimate).
• Smart Solutions: Battery storage, decentralized solar microgrids, and wind energy in coastal areas.