JAKARTA - World oil prices that continue to rise have made the reference price for LPG, namely CP Aramco, continue to increase, reaching the level of 900 US dollars per metric ton. Meanwhile, Indonesia's dependence on gas imports is still quite high, increasing by 65 percent.
Energy Watch Executive Director Mamit Setiawan said this dependence could lead to an increase in the trade balance deficit. For this reason, he advised the public to use induction stoves instead of LPG.
"Through the use of induction cookers, we can help the government in saving the budget in our APBN. In addition, the use of induction cookers is an effort to build energy independence,” explained Mamit, Wednesday, March 16
Mamit said that LPG imports from year to year continued to increase in line with consumption that continued to rise. By 2024, LPG imports could reach IDR 67.8 trillion.
“By switching to induction cookers, dependence on imported LPG will gradually decrease so that it will encourage energy independence. Not only that, the problem of the current account deficit (CAD) due to the gradual import of LPG can also be resolved," said Mamit.
Mamit explained, in addition to reducing the number of imports, this conversion step will also suppress LPG subsidies in the APBN which continues to swell. This year alone, the government has budgeted Rp. 61 trillion for LPG subsidies, assuming an ICP of 63 US dollars per barrel. As of February 2022, ICP has touched the level of 95.72 US dollars per barrel.
"This increase will have an impact on the LPG subsidy burden where for every 1 US dollar increase in ICP, the LPG subsidy burden will increase by Rp1.47 trillion. So you can imagine how much the additional burden for the current 3 kg LPG subsidy will be," explained Mamit.
According to Mamit, consumption using an induction cooker, compared to 1 kg of LPG, is 7.1 kWh. This means that by using an electric stove, people only need to spend Rp. 10,266, which is equivalent to 1 kg of non-subsidized LPG at a price of Rp. 15,500 per kg.
Assuming 9 kg of usage per month, the household costs will reach IDR 139,500. While the use of an induction cooker for 1 month is equivalent to 64.7 kWh or only Rp. 93,556.
"This means that the use of LPG energy is Rp. 45,944 per month more expensive when compared to the use of an induction stove," concluded Mamit.
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