Indonesian cities typically have sub-optimal street lighting
systems, with illegal connections, limited metering coverage, and poor service
standards. Cities commonly use inefficient mercury and sodium lamps rather than
modern lamp technologies.

Only a few cities including Yogyakarta and Makassar have
implemented full metering and are switching to more efficient technologies such
as LEDs. This shows that 50-80% of a city’s street lighting electricity bill
can be saved by optimizing the system.

The national utility, PLN, recovers the cost of electricity
used for street lighting and currently bills cities on a ‘lump sum’ basis which
tends to overestimate consumption. Many cities are unable to further increase
their tax receipts for providing street lighting to inhabitants and are now
facing budgetary shortfalls as a result (bills issued by PLN already or will
soon exceed the tax receipts).

Due to the slow pace of installing metering in Indonesian
cities and the current billing practices, cities have very little incentive to
install more energy-efficient street lighting. As such, the Indonesia
government has launched a Smart Street Light Initiative (SSLI) in 2014 under
the NAMA (Nationally Appropriate Mitigation Actions) framework established to
tackle the above issues.