The government has proposed allocating Rp815.56 billion to convert gas stoves to electric ones. But can this policy really reduce LPG subsidies?
For owners of warung tegal (warteg), switching from gas to electric stoves is not a simple matter. The Chair of the Koperasi Warung Tegal Nusantara, Mukroni, said warteg operators are not ready to make the transition envisioned by the government for 2027.
Mukroni argued that most water heaters only have electrical capacities of 900–1,300 VA. According to him, this is insufficient to power electric stoves. “Even if the government designs low-power electric stoves, wartegs use multiple burners simultaneously, which would still cause monthly electricity bills to soar,” he said on Wednesday, June 17, 2026.
So far, warteg operators have relied on subsidized 3-kilogram LPG cylinders. The main reason is to keep production costs low and maintain affordable food prices for lower- and middle-income consumers.
In addition, warteg kitchens require a constant flame for hours to prepare various dishes. Mukroni doubts electric stoves can meet these needs at a low cost. “We are concerned that if the government does not consider downstream readiness, this program could disrupt traditional culinary businesses,” he said.
The Ministry of Energy and Mineral Resources (ESDM) plans to include the electric stove program in the 2027 State Budget.
During a budget discussion with Commission XII of the House of Representatives on June 15, 2026, Energy Minister Bahlil Lahadalia proposed Rp815.56 billion for the program. He said the initiative is intended to reduce dependence on LPG imports.
“The energy we are promoting going forward is not only LPG, but also electric stoves, CNG, and various other options,” Bahlil said.
Indonesia imported 6.4 million tons of LPG in 2020, accounting for 80.2% of total consumption. By 2025, imports had risen to 7.49 million tons, accounting for 79.5% of total consumption of 9.24 million tons.
According to Bahlil, Indonesia spends around Rp120 trillion annually on LPG imports. This figure may increase depending on oil price fluctuations. Therefore, energy diversification is needed.
“The alternative is electric stoves,” he said.
The electric stove program is included in Ministerial Regulation No. 4 of 2026 issued by the Ministry of National Development Planning (Bappenas) concerning the 2027 Government Work Plan.
The regulation states that the program aims to ensure access to affordable, reliable, clean, and sustainable energy while reducing dependence on LPG imports.
The regulation targets between two and five million households, focusing on areas with reliable electricity supplies and outside planned city gas network developments. Through the program, the government expects to reduce the LPG subsidy burden by Rp2–5 trillion annually.
In 2022, the government conducted a pilot project involving 2,000 households, with 450 having VA and 900 having VA electricity connections, in Solo, Central Java, and Denpasar, Bali. Participants received 1,000-watt induction stoves, along with cookware, to replace 3-kilogram LPG cylinders.
As reported by Tempo in 2022, one beneficiary was Gusti Ayu Anom Ernawati from Kesiman Village, Denpasar, Bali, who received an electric stove from PLN.
According to Gusti, her household’s 900 VA electricity capacity was sufficient to operate the stove. She said cooking became faster and safer because there was no open flame.
At a hearing with Commission VII of the House on September 14, 2022, PLN President Director Darmawan Prasodjo stated that the pilot produced positive results. Public acceptance was reportedly good, and household cooking expenses were reduced by 10–15 percent compared with LPG use.
Based on a sample of 23 beneficiary households, PLN estimated annual savings of Rp20 million. The savings could be much larger if the program were implemented on a massive scale.
However, on September 27, 2022, PLN announced the cancellation of the gas-to-electric stove conversion project. According to Darmawan, the decision was made to maintain public comfort during post-pandemic economic recovery. Procurement contracts for 300,000 electric stove packages were also canceled.
Now, the electric stove migration plan has resurfaced.
Aryanto Nugroho, National Coordinator of Publish What You Pay Indonesia, said the transition could save foreign exchange by reducing LPG imports, but it would not necessarily save state budget expenditures.
According to Aryanto, the program may simply shift the burden from LPG subsidies to electricity subsidies, especially if it targets low-income households with electricity capacities of 450 VA or 900 VA.
These capacities are below the minimum requirement for most induction stoves, which is around 1,300 VA.
“If the cost of upgrading electricity capacity and monthly usage is not subsidized, households will have to pay out of pocket. If it is subsidized, the state’s electricity subsidy burden will increase,” Aryanto said on June 17, 2026.
He also warned that the program could suffer from the same targeting problems as the current 3-kilogram LPG subsidy.
“Without transparent reforms to the verification system, mistargeted subsidies will be repeated through a different instrument,” he said.
Echoing Aryanto’s concerns, Olo Berto Siahaan, Executive Director of Energy Watch, urged the government to carefully evaluate the program.
According to Olo, the government must ensure that efforts to reduce LPG import costs do not simply create a new fiscal burden. Therefore, target beneficiaries should be clearly classified.
If lower-income households are targeted, they would require assistance for electricity capacity upgrades and specialized cooking equipment.
“The transition should not end up replacing LPG subsidies with larger electricity subsidies,” he said.
Olo argued that adoption of electric stoves should begin with middle- and upper-income households that can fully cover their electricity costs. In his view, this approach is more realistic given the government’s target of 2–5 million households.
“The government must also ensure fairness for vulnerable middle-income groups,” he added.
Meanwhile, Achmad Nur Hidayat, an economist at Universitas Pembangunan Nasional Veteran Jakarta, argued that the migration to electric stoves does not solve Indonesia’s broader energy challenges.
He criticized the government’s assumption that LPG use itself is the main problem.
“The real issue is Indonesia’s dependence on imported energy due to weak domestic energy production and poor energy security governance,” Achmad said.
According to him, new fiscal burdens would arise not only from electricity subsidies but also from the need for additional infrastructure investments.
Therefore, he urged the government not to force households to switch to electric stoves.
Achmad recommended increasing domestic energy production, accelerating the development of the residential gas network, promoting economically viable coal gasification projects, reforming subsidy-targeting mechanisms, and improving the efficiency of Indonesia’s LPG supply chain. “The government must also reform subsidies to ensure they are better targeted and improve the efficiency of the national LPG supply chain,” he concluded. ●