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Rural Electrification Program in Indonesia: Comparing SEHEN and SHS Program Sambodo, Maxensius Tri
Economics and Finance in Indonesia Vol. 61, No. 2
Publisher : UI Scholars Hub

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Abstract

In 2014, the Indonesian government has targets to obtain 80% of electrification ratio and 98.9% of rural electrification ratio. Extending the grid and off-grid connection has been done to obtain the targets. This paper aims to compare two main programs on rural electrification namely Super Extra Energy Saving (Super Ekstra Hemat Energi, SEHEN) that is belong to PLN (state owned company in electricity) and the Solar Home System (SHS) that is financed by the Ministry of Energy and Mineral Resources (MEMR). Indonesia has started the rural electrification program in the late 1950s, but how to provide electricity in a sustainable ways both organizationally and institutionally still become a big challenge. The experiences from East Nusa Tenggara provinces showed that both SEHEN and SHS can instantly improve electrification ratio, but government needs to synchronize the technical, administrative, and financial aspect from the two programs. Without any improvements in designing the program, we argue that the existing program is not sustainable.
Models And Strategies for Developing the Electricity Sector in Indonesia as A Key Element for Poverty Eradication: Evaluation of The First Year Sambodo, Maxensius Tri; Negara, Siwage Dharma; Ahmad Helmy Fuady; Inne Dwi Astuti
Journal of Indonesian Social Sciences and Humanities Vol. 6 No. 2 (2016): Journal of Indonesian Social Sciences and Humanities
Publisher : RMPI-BRIN

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Abstract

This study is part of multiyear research on electricity access at remote areas. The end goal of the study is to develop a model of electricity access in remote area. We collected a baseline information as part of quasi experimental study at some villages, in Satar Mese sub-district, East Nusa Tenggara. The baseline data showed three major finding. First, households with electricity access spent significantly less on kerosene. Second, access to electricity increases spending on non-food items significantly. Third, because the off grid SEHEN program is for lighting, we do not obtain strong evidence for a causal relation between electricity access and increases in working hours. We found that access to electricity can improve peoples welfare through increasing spending on food and non-food spending. This mechanism can work because the price of SEHEN is relatively cheaper than kerosene light. Thus, people obtained extra saving on energy spending. In the long terms, we expect, more jobs can be created when electricity production increases.