This paper presents a multiobjective optimization methodology to optimally place a STATCOM in electric power distribution networks. The combination of multiobjective ant colony optimization (MACO) and the bacterial foraging optimization algorithm (BFOA) is proposed to minimize the power loss and total cost. The main intention of this analysis is to optimally place the STATCOM at multiple locations such as the transmission side, middle, and load side. Identifying the type and location of the STATCOM is a combinatorial optimization problem in power systems. In order to overcome this problem, the combination of hybrid MACO and BFOA algorithms is applied in this analysis to minimize the total cost and power loss. The total cost of the overall network is calculated by using system average interruption duration index and [system average interruption frequency index metrics. Moreover, the BFOA is used in this paper to minimize the power loss during distribution, which is adequate in searching for the optimal solution. The problem of reducing power losses in distribution systems through the BFOA approach is described here for a 5-bus system. Test results of a 5-bus network show that the proposed MACO with BFOA method can efficiently ensure the power loss and total cost minimization.