Indonesia’s Next Cooking Transition

Indonesia faces significant fiscal strain and energy security risks due to its heavy reliance on imported, subsidized LPG, which is used by 84% of households. The report evaluates three alternatives: induction stoves, dimethyl ether (DME), and city gas. It concludes that induction is the only viable non-fossil option, offering health benefits and long-term fiscal savings if paired with electricity tariff reform and a decarbonized grid. DME and city gas are deemed economically unviable or incompatible with climate goals. The report provides a policy roadmap focusing on making electricity upgrades affordable, implementing means-tested induction subsidies, and reforming LPG subsidies to target only the poorest households.

• Subsidized LPG is the dominant cooking fuel in Indonesia, used by 84% of households, but the country relies heavily on imports, with 2023 demand reaching 8 million tonnes against a domestic production of only 2 million tonnes.
• LPG subsidies are regressive because the 3-kg cylinders intended for low-income households are used across all income deciles, creating a substantial budget burden of IDR 80.2 trillion (USD 5.14 billion) in 2024.
• Induction stoves are identified as the most viable substitution option because they are cheaper than unsubsidized LPG and align with decarbonization goals if the electricity grid is decarbonized.
• Dimethyl ether (DME) and city gas are considered unsuitable alternatives; DME is economically unviable and would increase emissions, while city gas requires massive infrastructure investment and risks creating stranded assets.
• A pilot program for induction stoves in Bali and Solo revealed that while 66% of users found them simpler and 50% found them safer, major barriers include the need for ferromagnetic cookware (cited by 66%) and perceived slower cooking speeds (cited by 40%).
• Current electricity tariff structures discourage induction adoption because upgrading capacity (e.g., from 450 VA to 1,300 VA) can triple a household's bill even if consumption does not increase.
• Reallocating LPG subsidies from the top 40% to 60% of households to fund induction capital costs could result in annual savings of IDR 7.61 trillion to IDR 11.87 trillion, with fiscal breakeven achieved in 3 to 5 years.
• The transition to non-fossil cooking must integrate gender equality and social inclusion (GESI) because women are the primary cooks and are disproportionately affected by fuel shortages and distribution inefficiencies.

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.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.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.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }