Economists Support Transition to Electric Stoves to Reduce LPG Subsidy Burden

Managing Director of the Energy Shift Institute, Putra Adhiguna, supports the transition from gas stoves to electric stoves to reduce the LPG subsidy burden, amid soaring global oil prices due to the war between the United States-Israel and Iran. “Electric stoves are very important because we need to shift from LPG, which is about 75-80% imported and increasingly burdensome,” Putra said when contacted by ANTARA in Jakarta on Wednesday. Putra emphasised the importance of implementing household energy solutions regionally rather than nationally, to make them more targeted. For certain areas like urban regions where gas distribution networks can be stronger, Putra believes the use of piped gas (jargas) is more promising. “The argument that the budget is insufficient must be weighed against the LPG subsidy burden that has already exceeded reasonable levels,” Putra stated. He highlighted the need to learn from previous electric stove and rice cooker programmes to ensure public readiness, both in terms of equipment availability and electricity network preparedness. “PLN’s calculations claim that cooking costs can be 10-15% cheaper (compared to LPG),” Putra said. “It is important to anticipate that small politics do not hinder national interests in achieving greater energy independence, because the shift to electric stoves will certainly disrupt the existing supply chain,” Putra added. Deputy Speaker of the MPR, Eddy Soeparno, stated that transitioning from LPG stoves to electric stoves would require cheaper costs compared to the expenses poured into subsidising LPG imports. Changing from LPG stoves to electric ones has come under spotlight by Eddy, as LPG prices are also influenced by the skyrocketing global oil prices. “As is known, Indonesia imports 75-80% of its LPG needs, the price of which aligns with crude oil prices,” Eddy said. In the future, he continued, he will support government efforts to accelerate electrification, both in the transportation sector, industry, and cooking using electric stoves. The idea of transitioning from LPG stoves to electric stoves was once floated during the presidency of Joko Widodo (Jokowi).