Sulselbar power flow condition indicates the existing of buses voltage under specified standards which is determined. The operation of the Sulselbar electrical system consists of 44 buses and the power loss is 80.104 MW due to the non-optimal location of the reactive power. One of the solution to overcome the problems is the installation of Static Var Compensator (SVC) in Sulselbar transmission system. Several methods were conducted and improved to optimize the location of SVC. In this paper, the installation of SVC is using Inertia Weight Particle Swarm Optimization (IWPSO) which is the improvement of PSO. The optimization result shows that the Sulselbar transmission system require 4 location of SVC which are at bus 5 with 45.7 MVAr, bus 17 with 34.06 MVAr, bus 31 with 50.8 MVAr, and bus 40 with 120 MVAr. The result of the SVC installation is that the bus average raised 3.3% from 0.961 pu to 0.994 pu which also leads to power losses reduction on average of 9.14% from 80.104 MW to 72.777 MW.
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