Expert: Indonesia Needs Additional Electricity Supply To Pursue Economic Growth Target

JAKARTA - Indonesia is considered to need additional electricity supply in line with the increasing electricity consumption after the COVID-19 pandemic and also supporting economic growth targets.

Professor of the Faculty of Economics and Business (FEB) of the University of Indonesia (UI) Prof. Dr. Telisa Aulia Falianty explained that the demand and supply situation is not static, but dynamic, namely with the growth of the digital economy and the trend of electric cars as the main driver.

"The rapid development of the digital economy, coupled with the trend of electric cars, will be a factor that significantly increases demand for electricity. So, the term oversupply is not true," Telisa said in a statement in Jakarta, quoted from Antara, Saturday, October 5.

He said that currently the community is experiencing an increase in electricity consumption in line with the economic recovery. Telisa also reminded that along with the increase in demand, there needs to be concrete steps to create a power plant.

Meanwhile, the Director General of Electricity at the Ministry of Energy and Mineral Resources (ESDM) Jisman P. Hutajulu also said that electricity needs continue to increase. He also said that the current electrical condition is not appropriate if it is called oversupply.

"The growth is quite high," said Jisman.

In fact, he said, with the target of 8 percent economic growth, of course, the electricity supply must also be pushed even more. Therefore, the 2024 electricity supply business plan (RUPTL) must accommodate this need.

To note, since Indonesia managed to escape the COVID-19 pandemic, various sectors have returned to normal operations, including industries.

The positive impact of the normal economy returns, demand for electricity has actually increased significantly. This must be anticipated by all parties to ensure that electricity supply is safe in the next few months, 2025, and even in the coming years.

Previously, Minister of Energy and Mineral Resources Bahlil Lahadalia revealed that the government would boost electricity consumption per capita by up to 6,500 kilowatts per hour (kWh).

In the Opening Ceremony The 10th Indonesia International Geothermal Convention & Exhibition (IIGCE) 2024 some time ago, Bahlil said that the target was set to achieve economic growth of 8 percent per year in the era of Prabowo Subianto-Gibran Rakabuming Raka's administration.

Currently, the electricity consumption target per capita is only in the range of 4,000 kWh-5,000 kWh. This figure is considered only able to boost economic growth by 5 percent.

"So, we targeted electricity consumption per capita yesterday at 4,000 to 5,000 (kWh), but we see that the economic growth is only up to 5 percent," said Bahlil.

The National Energy Council (DEN) itself has calculated that if per capita electricity consumption is only targeted at 5,500 kWh, then economic growth can only be achieved by 6 percent per year.

"As the Daily Chair of the DEN, I have decided that at 5,500 kWh it is only to encourage economic growth of 6 percent," he said.

Therefore, the government decided to encourage electricity consumption per capita at least 6,000 kWh to 6,500 kWh to realize the 8 percent economic growth target launched by the Prabowo-Gibran government.

"This is in line with the policy direction of President Prabowo and Vice President Mas Gibran. So, later we will break down him at the RUPTL, then this will be the President Director of PLN, we will discuss it," said Bahlil.