Indonesia’s Next Cooking Transition

This executive summary analyzes the transition from subsidized liquefied petroleum gas (LPG) to non-fossil cooking solutions in Indonesia. It identifies induction cooking as the most viable alternative for on-grid households due to its cost-effectiveness compared to unsubsidized LPG and its alignment with decarbonization goals. The document argues that reforming regressive LPG subsidies can create the fiscal space necessary to fund the capital investments required for induction adoption, while emphasizing the need for electricity tariff reform and the integration of gender equality and social inclusion (GESI) to ensure an equitable transition.

• Indonesia relies heavily on imported liquefied petroleum gas (LPG) for cooking, creating significant financial and energy security risks. In 2023, LPG demand reached 8 million tonnes, but domestic production was only 2 million tonnes, resulting in an import bill of IDR 74 trillion (USD 4.8 billion). The LPG subsidy cost IDR 80.2 trillion (USD 5.14 billion) in 2024, contributing to a projected national budget deficit of IDR 662 trillion (USD 42.4 billion) in 2025.
• Induction cooking is identified as the most viable non-fossil alternative for households connected to the grid. It is more affordable than unsubsidized LPG, with potential monthly household savings between IDR 25,904 (USD 1.66) and IDR 35,703 (USD 2.29). Other alternatives, such as dimethyl ether (DME) and piped natural gas ("city gas"), are deemed less viable because they maintain fossil fuel reliance, require massive infrastructure investment, and pose stranded asset risks.
• Reforming LPG subsidies by targeting them toward low-income households could fund the transition to induction. Phasing out subsidies for the top 40% of households would save approximately IDR 7.61 trillion (USD 459 million) annually, while phasing them out for the top 60% would save IDR 11.87 trillion (USD 717 million) per year. The capital investment for induction adoption among the top 40% ranges from IDR 50.83 trillion to IDR 158.1 trillion, depending on whether meter upgrades are required, with a fiscal breakeven reached in 3 to 5 years.
• User experience data from 100 households in a government pilot indicates that while over 66% of respondents found induction stoves simpler to use than LPG, significant barriers remain. These include the requirement for ferromagnetic cookware (cited by over 66%), perceptions that induction is slower (around 40%), high upfront costs, and limited repair services. Additionally, the current capacity-based electricity tariff structure discourages adoption, as upgrading capacity to support induction can more than triple electricity bills for some households.
• The transition to non-fossil cooking must incorporate Gender Equality and Social Inclusion (GESI) because women are the primary cooks. The document recommends a policy roadmap that includes revising voltage upgrade costs, introducing block tariffs based on consumption rather than capacity, providing means-tested support for induction stoves and cookware, and targeting subsidies directly to women from low-income households.

APA

Suharsono, A., Sambodo, M. T., Handoyo, F. W., Farandy, A. R., Silalahi, M., Suardi, I., Inayah, I., Nurjati, E., Sharma, S., Laan, T., & McCulloch, N. (2025). Indonesia’s Next Cooking Transition. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-12/indonesia-next-cooking-transition-summary.pdf

Chicago

Suharsono, Anissa, Maxensius Tri Sambodo, Felix W. Handoyo, Alan R. Farandy, Mesnan Silalahi, Ikval Suardi, Ika Inayah, et al. Indonesia’s Next Cooking Transition. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-12/indonesia-next-cooking-transition-summary.pdf.

Wikipedia

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BibTeX

@techreport{suharsono2025indonesias, author = {Suharsono, Anissa and Sambodo, Maxensius Tri and Handoyo, Felix W. and Farandy, Alan R. and Silalahi, Mesnan and Suardi, Ikval and Inayah, Ika and Nurjati, Eka and Sharma, Shruti and Laan, Tara and McCulloch, Neil}, title = {{Indonesia’s Next Cooking Transition}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = dec, url = {https://www.iisd.org/system/files/2025-12/indonesia-next-cooking-transition-summary.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }