Bambang Ismoyo, Jakarta – The government is preparing a nationwide electric stove program as part of efforts to reduce Indonesia's heavy reliance on imported liquefied petroleum gas (LPG), which currently costs the country at least Rp 120 trillion ($6.8 billion) a year, Energy and Mineral Resources Minister Bahlil Lahadalia said on Monday.
The initiative is also intended to reduce the fiscal burden of subsidizing 3-kilogram LPG cylinders, which are widely used by low-income households.
"We know that around 80% of our LPG supply comes from imports. Every year, at least Rp 120 trillion in foreign exchange is spent on LPG imports. At current crude oil prices, the figure is likely above Rp 130 trillion," Bahlil told a parliamentary hearing with Commission XII, which oversees energy affairs.
According to Bahlil, Indonesia's high dependence on imported LPG poses a challenge to the country's long-term energy security objectives and underscores the need to diversify energy sources.
"If we allow this situation to continue without diversifying our energy mix, it will eventually become a problem. One alternative is to encourage the use of electric stoves," he said.
As part of the proposal, the Energy Ministry has requested Rp 815.56 billion ($45.3 million) in funding for the electric stove program in the 2027 budget.
Bahlil said the initial phase would target households with relatively low electricity capacity, particularly those in rural areas.
"As a first step, given that there are several types of electric stoves available, we are focusing on households with electricity connections below 900 volt-amperes," he said.
He said the government believes the approach will allow broader adoption without requiring significant upgrades to household electricity capacity.
However, Bahlil stressed that the program remains in the planning stage and will undergo further technical and economic assessments before being implemented on a wider scale.
The government is also evaluating more energy-efficient electric stove technologies to ensure that the benefits of switching from LPG outweigh the costs associated with the transition.