Indonesia’s Next Cooking Transition

The report argues that induction stoves are the most viable clean cooking solution for on-grid Indonesian households, offering cost savings and alignment with decarbonization goals compared to dimethyl ether (DME) or piped natural gas. It highlights that current universal LPG subsidies discourage adoption and recommends a targeted subsidy reform where savings from well-off households are reallocated to fund induction infrastructure. The document also emphasizes the need for electricity tariff reform and the integration of gender equality and social inclusion (GESI) to support women, who are the primary cooks.

• Induction cooking is identified as the most viable solution for on-grid households because it is more cost-effective than unsubsidized LPG and supports broader electrification and decarbonization goals. In contrast, dimethyl ether (DME) and city gas are deemed less viable as they would maintain fossil fuel reliance and risk stranded assets.
• Current LPG subsidies are regressive and create a financial burden on the government, with an import bill of IDR 74 trillion (USD 4.8 billion) in 2023 and a subsidy cost of IDR 80.2 trillion (USD 5.14 billion) in 2024. The 3-kg LPG subsidy is used across all income deciles rather than just low-income households.
• Reforming LPG subsidies by phasing them out for higher-income households could generate significant annual savings to fund the transition to induction. Phasing out subsidies for the top 40% of households would save approximately IDR 7.61 trillion (USD 459 million) per year, while phasing them out for the top 60% would save IDR 11.87 trillion (USD 717 million) per year. Fiscal breakeven for the required capital investment is estimated within 3 to 5 years.
• User experience data from 100 households in a government pilot show that while over 66% find induction stoves simpler to use and over 50% find them safer, significant barriers remain. These include the need for ferromagnetic cookware (cited by over 66%), higher upfront costs, and a perception by around 40% of users that induction is slower than LPG.
• Indonesia's current capacity-based electricity tariff structure discourages the switch to induction because upgrading connection capacity (VA) can more than triple electricity bills even without increased consumption. The report recommends a block tariff system based on consumption tiers.

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} }