Indonesian Political, Business & Finance News

Indonesia Prepares Electric Stove Project, Here's What the Energy Ministry Says

| Source: CNBC Translated from Indonesian | Energy
Indonesia Prepares Electric Stove Project, Here's What the Energy Ministry Says
Image: CNBC

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia is continuing efforts to diversify energy sources to reduce dependence on imported Liquefied Petroleum Gas (LPG). One of the steps being prepared is an electric stove programme that has been proposed in the indicative budget ceiling for 2027. Approximately 80% of national LPG demand must still be imported from abroad. This high import figure is the main cause of the large annual foreign exchange expenditure. “In the context of promoting the energy mix, we know that 80% of our LPG is imported. And our foreign exchange spent on LPG each year is at least Rp120 trillion. At current Indonesian Crude Price (ICP) levels, our foreign exchange spent on purchasing LPG is above Rp130 trillion. The subsidy is above Rp80 trillion,” Bahlil said when met at the House of Representatives (DPR) building, as quoted on Wednesday (17/6/2026). Bahlil assessed that if this condition is allowed to continue, it will become a burden on the national economy. Therefore, the government is beginning to encourage the use of electric stoves as an alternative household energy source. “So one of the alternatives is that we promote electric stoves. As an initial stage, we are currently requesting models of electric stoves that operate below 900 KVA,” he said. Meanwhile, when asked about the budget allocation of approximately Rp819 billion for the programme, Bahlil admitted he could not yet confirm the number of electric stove units to be provided. He said his party is still waiting for further budget discussions. “This is still in the initial three-unit stage, it hasn’t been finalised yet. We’ll wait for the budget discussion with the DPR, perhaps in August the number of units will be determined,” Bahlil stated. In agreement, Deputy Minister of Energy and Mineral Resources Yuliot Tanjung explained that the implementation scheme and distribution mechanism for the electric stoves are still in the in-depth discussion phase. He mentioned that the energy authority is reviewing various aspects so that this transition policy can be well received by the wider community. “Regarding the electric stoves, discussions are still ongoing. It was already explained by Mr Bahlil yesterday,” he said at the Ministry of ESDM office in Jakarta on Wednesday (17/6/2026). The plan to shift to electric energy had previously been included in the ministry’s priority programme proposal alongside the development of Compressed Natural Gas (CNG) for the household sector. The government views the use of electric stoves as more effective in optimising the domestic electricity supply surplus while strengthening national energy security. To date, the government continues to synchronise data on prospective recipients and prepare supporting infrastructure at the regional level. The Ministry of ESDM hopes that through the energy mix of electricity and domestic natural gas, Indonesia’s dependence on imports can be significantly reduced within the next few years.

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