Amid rising geopolitical tensions and growing concerns over energy security, the government is considering phasing out liquefied petroleum gas (LPG) for cooking—around 80 percent of which is imported—by reviving a nationwide induction (electric) stove program. At the same time, policymakers are also exploring the replacement of subsidized LPG with compressed natural gas (CNG) canisters. Yet beyond the promise of reducing import dependence, the question remains: Who stands to benefit from these policy shifts?

Indonesia’s dependence on imported LPG is not new. The household conversion program from kerosene to LPG has been running for nearly 19 years, yet the country never built the domestic production base needed to match the demand it created. Imports accounted for 80.58 percent of national LPG consumption in 2025 and rose further to 83.97 percent in early 2026. The supply chain is also highly concentrated, with the United States supplying 70.07 percent of Indonesia’s LPG imports, and the United Arab Emirates and Qatar supplying the rest.

That concentration represents the country’s greatest vulnerability. Most of the LPG used by Indonesian households travels thousands of kilometers by tanker through geopolitical chokepoints beyond Indonesia’s control, exposing consumers to supply disruptions and price volatility while simultaneously increasing the fiscal burden of subsidies. Indonesia spends around Rp 137 trillion (US$7.6 billion) annually on LPG imports, while subsidies exceed Rp 80 trillion each year, placing an increasing burden on the state budget.

Against this backdrop, the government’s decision to revive its previously abandoned household electrification program is seen as a way to reduce LPG consumption and dependence on imported fuel. It is also a logical option given Indonesia’s abundant coal reserves and growing renewable energy potential.

To support the initiative, Energy and Mineral Resources Minister Bahlil Lahadalia has proposed allocating Rp 815.5 billion (US$45.7 million) in the 2027 state budget for a nationwide rollout of electric cooking stoves. According to the minister, the initial phase would prioritize induction stoves compatible with households connected to 900-VA electricity services.

However, the government’s policy direction has become less clear following the minister’s simultaneous proposal to replace subsidized 3 kg LPG cylinders with CNG canisters. Bahlil said the government has completed the third stage of testing for 3 kg CNG canisters to ensure their safety. He acknowledged that CNG operates at pressures roughly 20 times higher than LPG, making safety considerations a top priority.

This raises a more fundamental question: Why CNG, and who stands to benefit from the transition? The minister argues that Indonesia possesses abundant natural gas reserves, making CNG a viable alternative cooking fuel.

Experts, however, have expressed concerns not only about safety but also about long-term sustainability. Competition for natural gas supplies has intensified, even within Indonesia. Many industries are competing for access to gas to power their operations, yet supply constraints mean that not all of them can secure it.

At the same time, existing oil and gas fields continue to mature while investment in new exploration remains limited. Of the government’s targeted US$1.5 billion in upstream oil and gas exploration investment for 2025, only around $500 million had been realized. Similarly, the government’s “Triple 100” program has made limited progress, with plans covering only 39 of the targeted 100 exploration wells by early 2026.

Against this backdrop, transitioning from LPG to electricity appears to be a more viable long-term strategy for Indonesia than switching to CNG. If implemented strategically, electrification could reduce dependence on imported LPG while making better use of the country’s existing electricity infrastructure.

Electrification alone, however, will not strengthen Indonesia’s energy security if the electricity powering these stoves continues to rely predominantly on fossil fuels. To realize the full benefits of electric cooking, the government must accelerate renewable energy deployment while investing in the infrastructure needed to integrate these resources into the power system.

This is particularly important because Indonesia’s electricity network continues to face structural constraints, including mismatches between electricity supply and demand across regions. At the household level, many consumers still have electricity connections below the capacity required to operate induction stoves comfortably, raising concerns about the affordability of upgrading electrical installations.

Equally important is household readiness. The transition to electric cooking is not simply a matter of replacing an LPG stove with an induction cooker. Many households may need to purchase induction-compatible cookware, upgrade household wiring or electricity capacity, and even modify kitchen layouts to safely accommodate new appliances.

Electric stoves may reduce Indonesia’s dependence on imported LPG, but they will not, by themselves, guarantee energy security. Their success will ultimately depend on whether they are integrated into a broader strategy that expands renewable energy, modernizes the electricity grid and supports households throughout the transition.