There has been a great interest in integration of distributed generation (DG) units at distribution level in the recent years. DGs can provide cost-effective, environmentally friendly, higher power quality and more reliable energy solutions than conventional generation. Understanding the wide variety of DG options available along with their technical benefits in today's changing electric market environment can be daunting. Technical benefits of DGs can range from loss reduction to reduction in feeder loading. Loadability enhancement is another benefit that DG can add to distribution system, if properly placed and appropriately sized. This paper presents a simple methodology for placing a distributed generation with the view of increasing loadability and voltage stability of distribution system. Effectiveness of the proposed placement technique is demonstrated in a practical distribution system of Pujon in Malang, Indonesia.