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A Flexible AC Transmission System (FACTS) device which is Static Synchronous Compensator (STATCOM) is commonly use to overcome voltage instability issue. However, the implementation of the STATCOM may cause a voltage increasement within the allowable limits in all areas and maintain the voltage stability of interconnected system. Therefore, this paper proposes an optimum placement of STATCOM to maintain the voltage profile of 150 kV subsystem during the loss of the transmission lines. The proposed methodology is verified by using a 150 kV interconnected system where the loss of two 150 kV transmission lines may lead to a voltage instability in the entire interconnected subsystem. The results show that the proposed method can maintain the voltage stability in the subsystem within the allowable limits in all period.