Purworejo. Indonesia has allocated Rp 10.3 trillion ($579.5 million) in its 2026 budget to accelerate electricity access in thousands of villages and hamlets that remain underserved by the national power grid, Energy and Mineral Resources Minister Bahlil Lahadalia said on Friday.

The funding marks a nearly threefold increase from the Rp 3.6 trillion spent in 2025 under the government's Village Electrification Program, known as Lisdes, underscoring President Prabowo Subianto's push to expand basic infrastructure and reduce development gaps across the archipelago.

Speaking during a visit to Purworejo in Central Java, Bahlil said government data shows that around 5,700 villages and 4,400 hamlets across Indonesia still lack adequate access to electricity.

"Thousands of villages and hamlets are still waiting for reliable electricity. The state must be present to serve all citizens," Bahlil said while meeting residents benefiting from the electrification program.

The minister said the initiative was shaped by discussions with President Prabowo, who has prioritized equal access to essential services as part of his broader development agenda.

Indonesia, Southeast Asia's largest economy, has significantly expanded electricity coverage over the past decade. However, providing power to remote communities spread across more than 17,000 islands remains a major challenge due to difficult terrain, sparse populations, and high infrastructure costs.

In 2025, the government completed electricity projects in about 1,361 villages and hamlets. The substantially larger budget allocation for next year is intended to accelerate expansion and bring power to communities that have remained off-grid for decades.

Bahlil, who grew up in Papua, said the issue carries personal significance. He recalled spending much of his childhood without access to electricity and studying by kerosene lamp before his community was connected to the grid in sixth grade.

"I know exactly what it feels like to live without electricity," he said. "I do not want future generations to experience the same limitations."

He noted that inadequate electricity access is often associated with eastern Indonesia, particularly Papua and other remote provinces, but said similar challenges persist even in parts of Java, the country's most populous and economically developed island.

"We often assume this problem only exists in eastern Indonesia. The reality is that there are still hamlets in Java that do not yet receive full electricity services," Bahlil said.

The minister acknowledged that extending electricity networks to remote settlements is frequently uneconomical from a commercial perspective. In some areas, he said, connecting just 44 households can require an investment of nearly Rp 700 million.

"From a business standpoint, it may not be profitable," he said. "But the government cannot measure basic public services solely by financial returns. The state's responsibility is to serve its people."

Beyond improving living standards, Bahlil argued that electricity access is essential for economic development, education, and digital inclusion. Schools without reliable power face difficulties adopting digital learning tools, while households and businesses are limited in their ability to participate in the modern economy.

He said expanding electrification is therefore not only an infrastructure project but also part of Indonesia's effort to promote social equity and create opportunities for future generations.

"We never know who a child growing up in a village without electricity might become," Bahlil said. "One day they could be a leader of this nation."

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