Economic Simulation of Indonesia’s Clean Energy Policy: Shifting from LPG to Induction Stove
Keywords:
Induction stove, LPG, energy subsidy, economic valuation, clean energy policyAbstract
Indonesian government is facing the burden increase of state budget from the energy subsidy, especially
Liquefied Petroleum Gas (LPG) subsidy. According to state budget plan of Indonesia (RAPBN) year 2019, the LPG subsidy (3 kg tube) year 2019 was estimated more than 70 Billion Rupiah. The subsidy nominal for LPG 3 kg tube is fluctuated because influenced by the uncertainty of world crude oil price where the LPG is the refinery product of crude oil. The increase of crude oil price in the global market could significantly increase the LPG subsidy of Indonesia’s government. In the other hand, PLN as Indonesia’s state-owned electricity company currently constructing new power plant approximately 35,000 MW that lead to the increasing of reserve margin in the power system that should be absorbed by the consumers. Recently, induction stove emerges by the Indonesia’s government as a solution for those two issues above. However, the literature review regarding the economics and policy of the development of induction stove in Indonesia’s electricity market is still limited. This research provides the economic valuation of induction stove compared to the utilization of LPG stove for each electricity and LPG tariff, i.e. subsidy and non-subsidy tariff. This research could serve as an academic reference for energy sector stakeholders in Indonesia in objective to implementing the clean energy policy to shift cooking technology from LPG stove to induction stove.
References
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