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Powering up

2017-06-08 12:47:50

South Korea is the easiest place in the world for businesses to obtain an electricity connection, according to the World Bank’s influential “doing business” survey, and so can offer valuable lessons to Indonesia as it seeks to rise up the world rankings.

AIPEG accompanied a delegation of Indonesian officials and executives from the state-owned electricity provider, PLN, to South Korea on May 16th-19th to learn how to connect customers to the national grid more efficiently.

The delegation, which included high-level officials from the Coordinating Ministry for Economic Affairs, the Ministry of Energy and Mineral Resources, and the Investment Coordinating Board, met with representatives from the state-owned Korea Electric Power Corporation and other agencies to hear about their experiences.

PLN executives were especially interested to see how over the past decade the Korea Midland Power Company has improved the process by which it connects new customers to meters during a visit to the largest power plant in Seoul, the capital.

In addition, the delegation discussed regulatory reforms in detail with an advisor to South Korea’s prime minister, Hwang Kyo-ahn, and an advisor to the Minister of Land, Infrastructure and Transport.

President Joko Widodo says he wants Indonesia to become one of the top 40 economies in the World Bank’s doing business rankings.

The process of “getting electricity” is one of 10 measures that the Bank uses to assess the ease of doing business based on the cost of getting a connection, the time it takes, and the number of procedures.

This year Indonesia rose 12 places in the electricity category as PLN improved the way it responds to customers’ requests for new connections, and increased the stock of electrical equipment it gives to contractors who perform work on its behalf.

Helping Indonesia with ease of doing business is one of AIPEG’s activity streams to improve market efficiency and competitiveness.