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Agri

Indonesian Farmers Save Costs with PLN's Electrifying Agriculture Initiative

17 Jan, 2025
Indonesian Farmers Save Costs with PLN's Electrifying Agriculture Initiative

PT PLN (Persero), Indonesia's state-owned electricity company, has been instrumental in transforming the nation's agricultural sector through its Electrifying Agriculture (EA) program. This initiative encourages farmers to transition from traditional diesel-powered machinery to electric alternatives, fostering increased productivity and operational efficiency.

By the end of 2023, the EA program had attracted over 241,700 customers, marking a 25% increase from the 193,058 customers recorded in 2022.

This growth reflects the program's success in modernizing agriculture, fisheries, plantations, and livestock sectors across Indonesia.PLN's CEO, Darmawan Prasodjo, emphasized that the EA program aims to support agricultural entrepreneurs in enhancing productivity and operational efficiency, ultimately leading to increased profits. He stated, "Through this program, we are trying to initiate a Creating Shared Value (CSV) for locals and the surrounding environment. We believe with various usage of electricity-based agricultural technology innovation can drive business actors to be more advanced and it will help increase their productivity significantly rather than using fossil energy."

The program's impact is evident in the significant increase in connected energy and electricity consumption. By the end of 2023, the total energy connected to the EA program reached 3,647 Mega Volt Ampere (MVA), a 16% rise from 3,128 MVA in 2022. Additionally, electricity consumption under the program surpassed 5.12 Terawatt hours (TWh), reflecting a 9% increase compared to 4.66 TWh in 2022.

Farmers across the country have reported substantial benefits from the EA program. For instance, the D’Shafa Farming Women’s Group (KWT) in East Jakarta experienced a 60% increase in harvest yields after implementing smart farming methods powered by electricity. Their monthly turnover rose from approximately USD 5,149 to USD 8,045.

Similarly, UD 2 Putri, a rice milling business in Demak, Central Java, doubled its production capacity from 5 tons to 10 tons per day after switching from diesel to electric-based milling machines. This transition not only boosted productivity but also reduced operational costs by 15%.

The EA program aligns with PLN's broader commitment to sustainable development and environmental stewardship. By promoting the use of electricity in agriculture, the program reduces reliance on fossil fuels, thereby decreasing greenhouse gas emissions and contributing to a cleaner environment.

In recognition of these efforts, PLN received several accolades in 2023, including the Main Green Leadership at the PROPER Environmental Award and Regional Environmental Management Performance 2023 by the Ministry of Environment and Forestry (KLHK).

The Electrifying Agriculture program exemplifies how strategic initiatives can drive economic growth, enhance sustainability, and improve the livelihoods of farmers across Indonesia. As PLN continues to expand this program, the future of Indonesian agriculture looks increasingly bright and sustainable.

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