Indonesia could achieve substantial economic, environmental, and health benefits by accelerating a shift from subsidized liquefied petroleum gas (LPG) to electric induction cooking, according to a new study by the International Institute for Sustainable Development (IISD) in collaboration with Indonesia’s National Research and Innovation Agency (BRIN). The report, Indonesia’s Next Cooking Transition: Shifting to Non-Fossil Cooking, evaluates three alternatives—induction stoves, dimethyl ether (DME), and city gas—and identifies induction cooking as the most practical and viable solution to reduce fossil fuel use, cut government subsidies, and improve public health outcomes.
The study draws on focus group discussions, household surveys, and pilot programs in Bali and Surakarta, alongside city gas users in urban areas, while DME was assessed using secondary data due to its limited real-world deployment. Findings highlight that induction cooking offers cleaner kitchens, safer operations, reduced monthly costs for households, and the potential to accelerate Indonesia’s broader energy transition by complementing electrification, renewable energy deployment, and infrastructure upgrades.
Indonesia’s current LPG subsidies for 3-kg cylinders are expensive, costing trillions of rupiah annually, with a large portion benefiting households that do not need support. By reallocating subsidies and promoting induction cooking among higher-income households, the country could save IDR 7–12 trillion per year, reach fiscal breakeven within three to five years, and create space to expand clean-cooking access for rural and remote communities. The report emphasizes that these measures can protect low-income households while building long-term, resilient energy solutions.
Despite LPG’s widespread adoption—84% of households still rely on it—Indonesia faces growing fiscal and energy security pressures. Domestic LPG production covers only 2 million tonnes of the 8 million tonnes demanded in 2023, resulting in a USD 4.8 billion import bill. Shifting to induction stoves offers a non-fossil solution that aligns with decarbonization goals while improving energy security and reducing reliance on imported fuels.
Experts note that this transition is about more than just changing cooking appliances; it represents a broader modernization of household energy use. Investments in induction cooking and supporting electricity infrastructure not only reduce emissions and subsidies but also strengthen Indonesia’s capacity to integrate electric vehicles, home energy storage, rooftop solar, and other sustainable technologies into the national energy system, unlocking long-term benefits for households, the economy, and the environment.
