This final project examines the reliability of the electrical distribution system in PG. Madukismo Yogyakarta for the parameter value of the power factor, which in this company uses a lot of electric motors as the main load. The use of electricity with large capacity sometimes faces various kinds of problems. These problems include network losses and voltage drops that occur in distribution channels. From the results of the measurement of the power factor through the main panel (LVMDP), it produces a non-standard average power factor measurement value of 0.68 which according to PLN standards a good power factor must have a value above 0.85 and below 1. The value of the power factor Inappropriate can cause problems such as large voltage drops, loads not working effectively and penalties by the PLN due to the value of the power factor below 0.85 Therefore in this final project a power factor value improvement solution is designed by designing a 1 step 6 module capacitor bank panel with a 20 kVAR capacitor value for each step so that the power factor value reaches 0.85 and the system can be said to be reliable.