Indonesia’s Next Cooking Transition

Indonesia currently spends trillions subsidizing the 3-kg liquefied petroleum gas (LPG) cylinder each year for households—much of it flowing to households that do not need financial support. LPG subsidy stood at IDR 80.2 trillion/USD 5.14 billion in 2024, resulting in substantial financial strains on the government’s budget, along with energy security concerns, as most of the domestically consumed LPG was imported. 

This report compares three alternatives to LPG for cooking—induction stoves, DME, and city gas—and finds that induction stoves are the most practical and viable option to support Indonesia’s shift to cleaner, non-fossil fuel cooking. The report's findings are based on focus group discussions, in-depth interviews, and a survey of 100 households that had previously received an induction stove as part of a government pilot. 

This report finds that induction is cheaper for both households and the government when LPG is not subsidized. Encouraging households to switch from LPG to induction can result in household savings. Induction cookstoves also encourage public spending on upgrading the electricity supply, which can support broader electrification goals, such as those for cooling, electric vehicles, rooftop solar, and home batteries. 

LPG subsidies remain the single largest barrier to induction adoption. As LPG subsidies are universally available, households have limited incentive to shift to alternatives. The need to protect people on low income from higher energy prices necessitates a scenario where LPG subsidies are maintained for low-income households; for well-off households, LPG subsidies can be swapped for induction subsidies. This report finds that this scenario can generate annual savings for the government ranging from IDR 7.61 trillion (approximately USD 459 million) to IDR 11.87 trillion (approximately USD 717 million). These savings can be used for the capital investment required for the adoption of induction cookstoves among households. 

This report recommends the following: 

1. Make electricity consumption and upgrades more affordable for scaling up adoption of induction cookstoves: Reform regulations to lower voltage upgrade costs, establish block tariffs for low-income households while ensuring cost recovery, and prioritize grid modernization.
2. Implement subsidies for induction stoves: To reduce LPG dependence, implement one-off connection subsidies for induction stoves and induction compliant cookware.
3. Reform LPG subsidies: The single largest barrier to induction adoption is the current approach to LPG subsidies. Reforming LPG subsidies with clear milestones and public awareness, while testing approaches like cash transfers to better target women from low-income households, could save IDR 7–12 trillion per year in public spending.

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Read more publications from this project: 

• Beyond Irrigation: Turning sunlight into supper for Kenya's women and farmers | A pilot of secondary use of solar irrigation power for clean cooking
• Beyond Irrigation: Harnessing the untapped potential of solar pumps | Lessons from a solar-powered milling pilot in Uttar Pradesh
• Ethnographic Research as a Tool for More Inclusive Just Transition Policies: Lessons from Mpumalanga, South Africa
• Coal Transition Impacts and the Approach to Inclusive Just Transition Policies in Indonesia