Improving Rural Electrification in Eastern Indonesia through Institutional Capacity Development

Recently, there is a distinctive gap in rural electrification in Eastern Indonesia. Common perspective on rural electrification tends to recognise lack of Government financial ability and private sector absence as the influencing factor of the gap. Nonetheless, rural electrification program is also related with the institutional settings. Therefore, concerning the gap in rural electrification in Eastern Indonesia, this research attempts to elaborate on how institutional capacity determines the rural electrification program. It compares three cases that represent flop discontinued project, successful ongoing project, and prospective program. It tries to find which element of institutional capacity that can be developed for other rural electrification program in the future. This research paper recommends cost-sharing arrangement that can create the system of incentives to relevant stakeholders as an institutional capacity element to be promoted.