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Indonesia Allocates $84.6 Million for Electric Stoves and E-Motorcycle Conversion Program

The Jakarta Globe
June 16, 2026 | 11:35 pm
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Energy and Mineral Resources Minister Bahlil Lahadalia speaks to reporters at the Presidential Palace in Jakarta on June 11, 2026. (B-Universe Photo/Celvin Moniaga Sipahutar)
Energy and Mineral Resources Minister Bahlil Lahadalia speaks to reporters at the Presidential Palace in Jakarta on June 11, 2026. (B-Universe Photo/Celvin Moniaga Sipahutar)

Jakarta. The Energy and Mineral Resources Ministry will allocate Rp 1.5 trillion ($84.6 million) from its 2027 fiscal budget to procure electric stoves and support the conversion of gasoline-powered motorcycles into electric vehicles as part of efforts to increase the share of non-fossil energy in the country’s energy mix.

The House of Representatives has approved a Rp 27.34 trillion ($1.5 billion) budget for the ministry in 2027, with the majority of the funds earmarked for energy infrastructure development and strategic programs designed to directly benefit the public.

According to ministry data, Rp 635.2 billion will be allocated to a motorcycle conversion program that transforms conventional fuel-powered motorcycles into electric vehicles, while Rp 815.6 billion will be used to procure electric stoves to reduce household dependence on liquefied petroleum gas (LPG), much of which is imported.

“We are also implementing the electric stove program to reduce our dependence on LPG,” Energy and Mineral Resources Minister Bahlil Lahadalia said in a statement on Tuesday. “We are exploring alternative energy sources for the future, not only LPG, but also including the utilization of compressed natural gas.”

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A day earlier, Bahlil said Indonesia spends around Rp 120 trillion ($6.8 billion) annually on LPG imports alone.

According to the minister, approximately 82% of the ministry’s total budget, or Rp 22.48 trillion, will be directed toward energy infrastructure development and priority programs, while only Rp 4.8 trillion will be allocated for operational expenses.

“Only 13% of the ministry’s budget ceiling will be used for operational purposes because we are focusing the available budget on programs that directly benefit the public,” Bahlil said.

He said the government remains committed to ensuring that most spending delivers tangible benefits to communities, particularly through expanding access to energy, strengthening national energy security, and reducing reliance on imported energy sources.

Other priority programs scheduled for funding in 2027 include Rp 5.21 trillion for city gas network development, Rp 3.95 trillion for the Dumai–Sei Mangkei gas pipeline project, Rp 9.75 trillion for rural electricity infrastructure, Rp 520 billion for new household electricity connection assistance, Rp 1.3 trillion for gas transmission pipelines in Central Java and West Java, and Rp 58.58 billion for micro-hydropower plants.

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