First In Indonesia: Zakat Financing Gives ‘Rays Of Hope’ To Four Villages In Jambi

INS-PLTHGround breaking Micro Hydro Power Plant (PLTMH) Jambi

LUBUK BANGKAR, Jambi, 6 April 2018 –  UN Development Programme together with the Directorate General of New and Renewable Energy and Energy Conservation (DJEBTKE), Ministry of Energy and Mineral Resources (ESDM) and Provincial Government of Jambi with the support from Badan Amil Zakat Nasional (BAZNAS) and Bank Jambi, inaugurate a ground breaking to start the construction of Micro Hydro Power Plant (PLTMH) to provide electricity for a total of 803 households from four villages in Jambi province, benefiting at least 4.448 people directly and many more businesses and services indirectly.

While the majority of Indonesians have access to electricity that can lead to better economy, education and health, a number of communities in Jambi are still unelectrified, making them prone to poverty and poor living standard. Data from ESDM reveals that the electrification ratio in Jambi is 91.40% which is below the national ratio of 95.35% (until December 2017). This gap prompted related institutions to give support, such as Bank Jambi with its CSR fund of USD 281.357 (IDR 3.76 billion); BAZNAS channeling zakat fund of USD 350.000 (approx. IDR 4.8 billion) for the provision of electricity and to achieve the Sustainable Development Goals (SDGs).

“This is the first support by BAZNAS to use zakat funds for SDGs in Indonesia and even in the world. The 7-month preparation prior to the construction was rigorous. This included the selection of the locations and involvement of all stakeholders to ensure the beneficiaries are the most poor and needy (mustahik)," said Dr. Zainulbahar Noor, Vice Chairman of BAZNAS. The construction of the PLTMH consists of one new unit at Lubuk Bangkar Village, Batang Asai Sub-district, Sarolangun District, scheduled to operate in August 2018. In addition, there is revitalisation of 3 PLTMH units at Ngaol Village, Air Liki Village and Air Liki Baru Village, Tabir Barat Sub-district, Merangin District.

“These constructions come from collective initiatives with the people, which is impelemented through funding partnership with several entities. The government appreciates and fully supports this initiative as an effort to provide electricity from new and renewable energy, through MTRE3 project (Market Transformation through Design and Implementation of Appropriate Mitigation Actions in the Energy Sector),” said Wawan Supriatna, Secretary Directorate General of EBTKE.  Through MTRE3 project which is funded by Global Environment Facility (GEF),  UNDP and Ministry of ESDM aims not only to reduce emission, but also to increase the electrification ratio especially in Indonesian remote areas.

Fact sheet

The new PLTMH has 60KW capacity and it is able to provide electricity for 283 households, two schools, mosque and 4 mushollas and other village’s infrastructure. Meanwhile, the revitalised PLTMHs are scheduled to fully operate in July 2018, each with 40KW capacity, to provide electricity for 523 households, 5 schools, 3 mosques, 15 mushollas, 1 Islamic school and other villages’ infrastructure. In total, 803 households will benefit from this programme. To maintain the sustainability of these PLTMHs, operators in every village will be trained to manage the power plants.

“This ground breaking is important because the electricity which will come to the villages for the first time will bring hope and opportunity to villages where previously women have had to give birth in darkness, children have had to study and pray by candlelight and without power, there has been little entrepreneurship. This is the first example of how an innovative partnership between UNDP, religious organisation (BAZNAS), the private sector (Bank Jambi) and the Government can empower local communities and contribute to the achievement of SDGs,” said Francine Pickup, Deputy Country Director UNDP Indonesia.

UNDP hopes that access to electricity will help in eradicating poverty and prosperous communities in achieving SDGs in particularly goal no 1 (No Poverty) and no 7 (Affordable and Clean Energy).



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