National Electricity Day in Indonesia Date in the current year: October 27, 2024

Electricity first appeared in Indonesia in the late 19th century, when Dutch plantation owners began to install electrical generators for their tea and sugarcane plantations. Some time after, private gas utility companies such as the Nederlandsch Indische Gasmaatschappij (Netherlands Indies Gas Company) diversified and began providing electricity to the local population. In 1927, the colonial authorities established a state company that operated all hydroelectric power stations in Indonesia.

During World War II, the Japanese occupied Indonesia and took control of the gas and electricity sector. Following the capitulation of Japan and the declaration of Indonesian independence in August 1945, young Indonesian revolutionaries began to seize control over the infrastructure: telegraph and telephone lines, radio stations, railways and, of course, power plants.

In September 1945, the republican government took control of the entire electricity sector. On October 27, President Sukarno established the state energy provider named the Bureau of Electricity and Gas (Jawatan Listrik dan Gas). In 1961, the Bureau was renamed the General Governing Body of the State Electricity Company (Badan Pimpinan Umum Perusahaan Listrik Negara).

In 1965, the company was split into two separate state-owned enterprises: the State Electricity Company (Perusahaan Listrik Negara, PLN) and the State Gas Company (Perusahaan Gas Negara, PGN). Until 2002, the PLN had an official monopoly on electricity distribution.

In 2002, the President of Indonesia signed the Electric Power Act that was aimed at deregulating the country’s electricity sector. It permitted foreign and domestic private companies to sell electricity directly to the population, using the existing transmission network operated by the PLN. However, the Constitutional Court annulled the act two years later.

For a number of years, Indonesian electricity sector remained in an uncertain legal situation. In 2009, an new electricity act was introduced to end the monopoly of the PLN, but the company’s labor union was unhappy with it and challenged the new law in court. Because of the legal issues, the PLN remains a monopolist.

The main sources of power in Indonesia are coal on Java and oil on small islands that rely on diesel plants for electricity. In the past decade, the PLN has developed hydro power and geothermal power, but the country’s geothermal and hydro power potential is underutilized. As of 2019, 98.9% of Indonesia’s population had access to electricity, which was a great progress compared to slightly over 50% in 2011.

The anniversary of the nationalization of the electricity sector in Indonesia is celebrated as National Electricity Day. It can be considered the professional holiday of all PLN employees. Its main goal is to highlight the importance of the electric power sector for the country’s economy and the well-being of its population.