ABSTRACT
Energy efficiency is necessary for the healthy economy of a nation. This is especially true for developing countries such as Indonesia. Kerosene has been subsidized for a long time especially in Indonesia for cooking fuel. Kerosene as a cooking fuel has been mainly consumed by low-income households. Elimination or significant reduction in the kerosene subsidy has a negative impact on low-income households. To mitigate this issue, the Indonesian government has launched a conversion program, which converts the use of kerosene to LPG as a cooking fuel for low-income households. The conversion program saves energy and fuel consumption cost since LPG stove efficiency is higher than kerosene. This entry discusses the benefits of a conversion program for low-income households, stove efficiency, and government. Economic analysis of the conversion is also presented in this entry.
