Indonesian Political, Business & Finance News

ESDM Proposes Rp 815 Billion for Electric Stove Procurement

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Energy

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has proposed a budget of Rp 815 billion for an electric stove procurement programme. Bahlil believes the programme could be one solution to reduce dependence on imported liquefied petroleum gas (LPG), which has been burdening the country’s foreign exchange reserves and subsidy budget.

According to Bahlil, Indonesia remains heavily dependent on LPG imports. Currently, around 80 percent of national LPG needs are met from abroad. “At the current Indonesian Crude Price (ICP), the foreign exchange spent on purchasing LPG is above Rp 130 trillion. The subsidy is above Rp 80 trillion,” Bahlil said at the parliamentary complex on Monday, 15 June 2026.

Bahlil stated that this situation cannot be allowed to continue without energy diversification efforts. Therefore, the government is again promoting the use of electric stoves as an alternative to reduce subsidised LPG consumption.

“If we continue to let this condition persist without seeking energy mix diversification, it will become a problem. So one of the alternatives is to push for electric stoves,” he said.

Bahlil explained that the electric stove procurement programme will be carried out in stages. The government is currently studying the use of electric stoves that can be operated in households with electricity capacity below 900 volt-amperes (VA), so they can be utilised by communities in sub-district and rural areas.

However, Bahlil could not yet confirm the number of electric stove units to be procured through the budget. According to him, discussions regarding the allocation and procurement quantity will still be held with the House of Representatives (DPR) during the budget formulation process.

“This hasn’t been finalised yet. We’ll wait for the budget discussions with the DPR, perhaps in August the number of units can be determined,” he said.

Bahlil also addressed the rejection that previously emerged against the electric stove conversion programme several years ago. He believes technological developments have produced better electric stove models compared to previous generation products.

“There is a new electric stove model. Indeed, as time goes by, there is technology that is far better than the old electric stove technology,” Bahlil said.

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