The addition of capacitors to the motor load acts as the reactive power supply required by the motor so that the
motor load no longer draws much of the reactive power from the system. The reactive power of the unused power system
into energy is only required to generate magnetic flux on the inductive load. However, this reactive power remains a
burden for power generation which, when the value is large, causes the system power factor to decrease. The addition of
capacitors as reactive power compensators to their applications, most of them are placed close to loads that require reactive power compensation. In this research, experimental research has been done by placing the capacitor compensator in different position to see the condition of the system response to the condition of the power installation (electric motor). Experimental results and ETAP simulation indicate the effect of capacitor’s positioning on power quality based IEEE STD 446-1995. Power factor improvements will be optimal when capacitors are placed for individual compensation positions compared to global compensation and group compensation positions.