Key insights and market outlook
The Indonesian government, through the Ministry of Energy and Mineral Resources (ESDM) and PLN, has expanded electricity access to underprivileged households via the Free New Electricity Connection Program (BPBL). As of 2024, over 367,000 households have benefited, with 215,000 more targeted for 2025. The program aims to achieve universal electricity access by 2029-2030, supporting economic development and poverty reduction.
The Indonesian government has made significant progress in expanding electricity access to underprivileged communities through the Free New Electricity Connection Program (BPBL). Implemented jointly by the Ministry of Energy and Mineral Resources (ESDM) and state-owned electricity company PLN, the program has successfully connected over 367,000 households as of 2024. For 2025, the government has set an ambitious target to provide electricity to an additional 215,000 households.
The program has had a transformative effect on beneficiary households. Ruslan, a farmer from Musi Banyuasin, South Sumatra, shared his experience of receiving electricity after nearly a decade without it. The new connection has enabled his children to study more effectively and has opened up new economic opportunities for the family. Ruslan plans to invest in a refrigerator to sell cold drinks and ice, while his wife can expand her tailoring business.
Minister of ESDM Bahlil Lahadalia emphasized that the BPBL program is a manifestation of the government's commitment to social justice as mandated by the constitution. The program is part of a broader initiative to achieve universal electricity access by 2029-2030, aligning with President Prabowo Subianto's vision for national development. PLN's CEO Darmawan Prasodjo reaffirmed the company's commitment to supporting this initiative, ensuring the process is carried out efficiently and effectively.
The provision of electricity through BPBL is expected to have far-reaching economic and social benefits. Beyond mere illumination, electricity is seen as a foundation for accelerating development, stimulating economic activity, creating jobs, and helping to alleviate poverty. As the program continues to roll out, it is poised to make a significant impact on the lives of thousands of Indonesians, bringing them out of darkness and into a brighter future.
BPBL Program Expansion
Electricity Access Initiative
Government Infrastructure Investment