Abstract

In 2017 Indonesia has reached about 91.16% of national electrification ratio. The most challenging part of increasing the electrification ratio is the ineffective cost and long term revenue of installing long distribution and transmission lines to the isolated and remote areas. To achieve the 100% electrification ratio in 2020, the Indonesian government has constructed more micro hydropower plants (MHPP) scale to supply power to isolated and remote areas. The total hydropower plant that has been installed all around Indonesia since 2016 is about 11% of the total available potency. The projects were economically effective as they normally run with the collaboration among, national government, local authority and local communities. The mini-micro hydropower projects that were running from 2011 to 2015 have been conducted in two main scheme, the private sector or so-called independent power producers (IPPs) and through government funding. The MHPP projects implementation of course was facing in between benefits and short-comings. Some of the benefits of MHPP are low cost project, environment benign and long live operation. However, the drawbacks of MHPP might include specific site requirement, social conflict, non-skilled operator that might harm himself, and operation is depending on the local climate. The win-win solution should be come across for MHPP projects to accommodate between the benefits and the short-comings.