Abstract—Distributed Generation (DG) is commonly used to reduce active power losses on a distribution network. The optimal location and size of DG will result in minimum active power losses and voltage profile improvement. This research proposes Novel Voltage Sensitivity Index (NVSI) and Stability Index (SI) methods to determine the optimal location and analytical expression to find optimal size and location of DG in Makassar distribution system, Feeder Kima, 76 buses to minimize active power losses and to improve voltage profile. Therefore, DG interconnection has a significant effect on improving the quality of the distribution network. The results show that the sensitivity method does not lead to the best placement DG in reducing active power losses. However, it is an analytical expression, which is very effective in determining optimal location and size of DG to reduce active power losses and to improve voltage profile in Makassar distribution system, Feeder Kima, 76 buses. The most optimal location for DG placement is on Bus 73 (Mega Sakti Pyramid), with a DG size of 0.8515MW. These combinations reduce 45.77% active power losses and increase 1.7336% voltage profile.