At a glance
- Client: An international clean-energy nonprofit
- Sector: Clean energy / household appliances
- Region: Indonesia
- Service: Market research and policy analysis
The challenge
Indonesia's households cook mainly with LPG, most of it imported and heavily subsidised, while the government has set targets to move households to electric induction cooking. Adoption has stayed far below those targets. The client, an international clean-energy nonprofit, needed an evidence base on the size and make-up of the induction stove market, where supply comes from, what stops households switching, and what the economic, health and policy case for the transition looks like, including a basis for efficiency standards and labelling.
What we did
- Defined the product scope by wattage band (under 1,500 W, 1,500 to 3,000 W, over 3,000 W) and by number of heating zones (one to four).
- Combined the client's own data and a published electric-cooking landscape study with commercial sales data on 300+ products from 50+ brands, store audits in 35 shops across four cities and 11 industry interviews, plus focus groups with manufacturers and importers.
- Traced imports and exports through Statistics Indonesia (BPS) trade data under the relevant HS codes, and used BPS household data on cooking fuel.
- Cross-checked market size, sales and import figures across sources and reconciled the differences by triangulation.
- Modelled historical and projected sales from 2019 to 2028 by wattage and heating zone, and the stock of stoves in use out to 2050.
- Ran a cost-benefit analysis of switching one million households from LPG, using the WHO BAR-HAP tool, across scenarios that varied fuel stacking, LPG subsidy and the renewable share of the power mix.
- Compared household energy costs and subsidies by electricity connection size, and reviewed grid reserve margins by region.
- Benchmarked minimum energy performance standards in the EU, China and India and set out the IEC 60350-2 test method as a basis for standards and labelling.
What we delivered
A full market and policy study, with its executive summary also in Bahasa Indonesia, and a summary deck for stakeholders. Our part of the policy chapter benchmarked efficiency standards and labelling in the EU, China and India and the IEC test method; the client set its own proposed efficiency tiers.
Market and policy study report
Word report · 11 tables, 27 figures, about 150 endnotes
- Executive summary, also provided in Bahasa Indonesia
- Four-step research methodology
- Market demographic: annual sales, country of origin, local manufacturing
- Transition from gas to induction: LPG dependence, barriers, impact
- Sales trend and forecast
- Equipment in use, consumer awareness and willingness to switch
- Energy efficiency by stove type and wattage
- Policy interventions: conversion subsidies, infrastructure, awareness campaigns
- Policy benchmarking for efficiency standards and energy labelling
- Conclusion, recommendations and an appendix on HS codes
Summary deck
Slide deck · about 30 slides
- Executive summary and background on the shift from kerosene to LPG
- Research methodology
- 2023 market by wattage, heating zone, origin and leading brands
- Gas stove dependence, cultural barriers and indoor air pollution
- Barriers: upfront cost, household power capacity, affordability and supply
- Household cost savings, true economic cost and scenario cost-benefit
- Sales and stock forecasts
- Efficiency and cooking-time tests by wattage and dish
- Policy interventions, conclusion and recommendations
What we found
- The market is led by low-wattage, single-zone stoves, which suit the low electricity connections most homes have but offer limited features.
- Upfront cost is a major barrier: an induction set-up costs 1.6 to 2 times as much as an LPG one, and compatible cookware can cost up to twice as much again.
- Switching from LPG to induction cuts household cooking costs by about 20 to 25% across income levels, because electricity tariffs are lower than LPG prices.
- The scenario that removes LPG subsidies and raises renewables to 60% of the power mix gives the highest net benefit, and the lower fuel-stacking scenarios avoid an estimated 840 premature deaths a year.
- Rollout should be phased by region: Java-Bali and Sumatra have the grid headroom to scale now, while weaker grids need upgrades first, with savings from LPG subsidy reform reinvested in grid reinforcement for low-income households.
- Middle- and high-income households should adopt first, because only the 1,800 W stove matches gas on boil time while giving the highest efficiency.
In numbers
- 86.4% of Indonesian households use LPG as their main cooking fuel, and domestic production meets only 27% of demand.
- Induction stoves average 76.35% thermal efficiency, against 45% for LPG stoves.
- About 980,000 induction stoves were sold in 2023, against a national target of converting 58 million households by 2050.
- In 2023, 75.6% of induction stoves sold were under 1,500 W and 78.45% were single-zone.
- 56.6% of the 2023 market was imported, with China supplying over 90% of imports by volume and value from 2019 to 2023.
- Indonesia's residential sector emitted 25.7 million tonnes of CO2 in 2022, 51% more than in 2010.