Call The Price Of Electric Stoves Expensive, National Energy Council: But Its Use Is Cheaper And Can Reduce Dependence On LPG Imports

Illustration. (Photo: Doc. Antara)

JAKARTA - The National Energy Council (DEN) considers the moment of a significant increase in world oil and gas prices to be a great opportunity for the government to encourage the use of induction cookers to the public. Moreover, using an induction cooker can reduce dependence on imports of liquefied petroleum gas (LPG) nationally.

DEN member Satya Yudha assesses that the current increase in world oil prices has also increased the LPG price reference, where Indonesia uses Aramco's CP reference in calculating LPG import prices.

"This condition then forced Pertamina to increase the price of non-subsidized LPG. However, in terms of the burden on the state budget, it will also increase because the condition of world commodity price movements makes subsidies for 3 kg LPG increasingly soar," said Satya, Tuesday, March 15.

Based on Indonesia Energy Outlook 2019 data from the National Energy Council, in 2018, subsidized LPG consumption reached 7.5 million tons. This increase in LPG consumption is not matched by the supply of LPG from domestic LPG refineries and oil refineries. To meet these needs, the government can only rely on domestic LPG production of two million tons (26 percent), while the rest is imported as much as 5.5 million tons (74 percent).

Satya continued, from year to year the consumption of LPG continues to increase, so that LPG subsidies are also increasing. In 2018, the government set a subsidy for 3 kg LPG between IDR 6,000 and IDR 10,000 per kilogram.

During 2018 alone, the government allocated a budget for subsidies reaching IDR 58.1 trillion. In 2020, the LPG subsidy budget is estimated at IDR 50.6 trillion.

Satya assessed that there are several things that can substitute this LPG, one of which is the induction cooker. Even though the current price of the stove is still quite expensive, in terms of energy use it is already cheap and cheaper than LPG.

"So we at DEN really encourage the government to invite people to switch to induction stoves," said Satya.

Satya assesses the need for intensive socialization regarding this matter. The role of PLN and the Government in convincing the public that induction cookers are cheaper is the key to people's belief in switching.

"Because, if we talk about the community, the main thing is the price. If there is a cheaper price, people will definitely switch to the cheaper one," said Satya.

This condition is also said by Satya as one of the mitigations so that people do not flock to take elpiji gas melon which is currently still subsidized by the government. With the increase in the price of non-subsidized LPG, the price gap between subsidized LPG and subsidized LPG is very large and has the potential to make people hunt for subsidized LPG.

"In fact, the subsidized LPG is the responsibility of the state budget. We at DEN also ask the government and Pertamina to cooperate with law enforcement officials to prevent this shifting," said Satya.

He also assessed that using an induction cooker could also be in line with the government's target of reducing carbon emissions. This is because, by reducing dependence on imported LPG, with an induction cooker, the amount of carbon emissions released is also less.

"All of this is also inline with the government's plans for the energy transition and reducing carbon emissions and realizing energy independence," Satya concluded.