81226 Toward Universal Access to Clean Cooking September 2013 E A P C L E A N S T O V E I N I T I AT I V E K N O W L E D G E E X C H A N G E S E R I E S I ND ON E S IA Changing Landscape of Household Cooking Fuels Indonesia has made great strides in moving its citizens toward clean cooking solu- Key Messages tions. Complementary programs across the archipelago reflect the country’s diverse geography, culture, and cooking practices. Thanks to the government’s highly suc- • Forty percent of Indonesia’s more than 60 cessful Kerosene-to-LPG Conversion Program (2007–12), some 30 million house- million households continue to rely heav- holds, mainly in urban areas, have switched to LPG. There is also a significant niche ily on traditional biomass fuels for cooking. market potential for biogas, with more than 10,000 units already having been Household air pollution from solid fuel com- installed in rural areas with suitable conditions. Yet two-fifths of the population— bustion is linked to some 165,000 premature some 24.5 million households—still rely on traditional biomass, mainly fuelwood, deaths in Indonesia each year. to meet most of their cooking needs. Nearly half of these households reside on the densely populated island of Java, while the other half are scattered throughout • In rural Indonesia, biomass is renewably mainly lower-income provinces and sparsely populated rural areas (map 1). In many harvested and abundant and affordable rural and peri-urban areas, biomass can be freely collected or cheaply purchased. to the poor. Scaled-up use of clean biomass Without significant policy shifts, traditional biomass cooking will likely remain high stoves could mitigate the health risks of tra- and may even increase in certain areas. ditional biomass cooking and contribute to Indonesia’s green growth agenda. Map 1. Distribution of Households Reliant on Firewood as Primary Cooking Fuel, 2010 • The biomass stove market is limited. All commercially sold stoves are made by local artisan producers, and profit is the supply chain’s major concern. Introducing new mod- els would need to be linked to a higher profit margin and training in business development. • Achieving universal access to clean cook- ing by 2030 will require developing a thriving clean biomass stove market. An integrated approach, using a results-based financing mechanism, is proposed to over- Source: BPS-Statistics Indonesia 2012. come supply- and demand-side barriers and institutional constraints. Mitigating the Health Risks of Biomass Cooking Each year, an estimated 165,000 premature deaths in Indonesia can be attributed to household air pollution (HAP) linked to toxic smoke emitted from the incom- plete combustion of solid cooking fuels. Solid fuels used for household cooking are closely linked with a high incidence of respiratory disease, especially among women and their young children. Switching to such modern fuels as LPG and electric- ity—the most effective way to reduce HAP—is unaffordable to most poorer rural households. But emissions could still be reduced by burning biomass fuels using improved or advanced biomass stoves.Thus, in areas where biomass cooking persists, the most effective way to mitigate HAP exposure is to promote betters stoves that Photo credit: Laurent Durix. burn biomass energy in a cleaner, more efficient way. knowledge about better stove models and stove performance. A Sustained Demand for Firewood as new model’s acceptability depends on its potential to be sold. Cooking Fuel Since consumers are used to buying stoves at cheap prices, sup- The main factors that influence household cooking fuel choices pliers are interested in selling as many stoves as possible, not just are affordability, availability, accessibility, and cultural acceptabil- ones that are more fuel-efficient.Thus, introducing a new stove ity. A 2009 household energy survey conducted by GERES model would need to be linked with a higher profit margin. It identified fuel cost, among other desired attributes (i.e., easy would also require training producers, wholesalers, and retailers to obtain, better-tasting food, cleaner cooking environment, in how to maximize benefits from participating in selling the and ease of use), as the main reason for switching fuels.1 In new model to incentivize them to continue on. 2006, reduced availability of the kerosene supply caused many rural households who either could not access or afford LPG to Learning from Successful Clean switch to firewood. Currently, LPG use is subsidized, with about 40 percent of it imported. But international price fluctuations Cooking Programs could impinge on the government’s fiscal ability to maintain Key principles underlying the success of the Kerosene-to- today’s subsidized price level. If subsidies were reduced and LPG Conversion Program and the Indonesia Domestic Biogas retail prices raised, many households would likely shift to fire- Programme (IDBP) can be adapted to a program designed to wood as an alternative fuel. Even now, many households are promote clean biomass cooking. The LPG conversion pro- unwilling to pay for LPG, even at the subsidized price, if they gram has demonstrated the importance of strong government can freely collect firewood from the local environment. Also, commitment and a firm policy objective, along with effective household cooking fuel choices vary by region. Many use a marketing and public-awareness campaigns, assured availabil- mix of fuels, especially when alternate ones are available at an ity of an uninterrupted fuel supply, and effective monitoring affordable price. Rural households that cannot regularly access and evaluation. The IDBP, better known as the BIRU (Biogas LPG may use kerosene to supplement their firewood use. Or Rumah) program, has underscored the value of adopting a mar- peri-urban households that use LPG may supplement it with ket-based approach, combined with targeted financial support firewood that can be freely collected or cheaply purchased. to help households overcome high upfront system costs. The program has also emphasized the need for quality control and Limited Biomass Stove Market adherence to standards, verification of results and procedures, and Types and local management. Currently, the commercial market for biomass stoves is quite Key Policy Recommendations limited. Households either purchase or build their own rudi- mentary cookstoves and usually own more than one.The usable Now there is a window of opportunity to apply the lessons from lifetime of stoves varies from about 6 months up to 4 years, Indonesia’s successful clean cooking programs to promoting given that many owner-built stoves are repaired on an ongoing better biomass stoves. Previous efforts to introduce improved basis. Markets do not yet exist in many rural and more remote biomass stoves lacked an integrated focus on consumer aware- areas, while they are fairly well-established in more developed ness and demand, product affordability and availability, and regions (Java, Sumatra, and Sulawesi).Three biomass cookstoves producer capability to make uniform products according to commonly used in Indonesia are the Keren, Anglo, and Apollo, which are distinguished by the types of fuels used.The Keren is Figure 1. Overall Strategy To Scale Up Clean Biomass a firewood-burning stove, usually made of terra cotta or other Cookstoves in Indonesia materials. The Anglo, typically made of clay pottery, uses char- coal; while the Apollo uses sawdust and rice husk for fuel. Create an enabling All commercially sold biomass cookstoves are based on the envirionment Artisan Production Model, meaning that local producers build stoves individually by hand. Production processes are slow, incurring high labor costs, and quality control is weak. Most Institutionalization businesses are family-owned and passed down from one gen- eration to the next. About 40 percent are owned and operated by women. Business arrangements are mostly informal, based Support the Stimulate user market and supply- demand for on mutual trust, with no legally binding conditions of sale and clean stoves side business development purchase.The traditional cookstove supply chain generally lacks 2 INDONESIA: Toward Universal Access to Clean Cooking standards. Households are unaware of the harmful effects of Figure 2. RBF Framework with Three Building Blocks HAP and the health benefits of stoves that perform better. and Two Supporting Pillars Producers are hesitant to produce clean cookstoves without Results-based incentives • Number of stoves demonstrated consumer demand. And to date, no institution • Establish clean stove delivered standards/rating system • Level of subsidies is has championed clean biomass fuel for cooking. • Establish testing and linked to stove • Number of stoves used certification protocols performance • Verify actual The Indonesia CSI suggests that an integrated strategy • Establish testing centers • Disbursement of subsidies performance of stoves used is required to overcome these obstacles (box 1). The pro- is linked to monitoring and verification of results Defined clean Monitoring and posed strategy comprises three interrelated pillars—creating stoves verification system an enabling environment, stimulating user demand for clean stoves, and supporting the market and supply-side business Institutional Awareness- strengthening & raising development—with institutionalization at the center (figure capacity building campaign 1). This strategy builds on and is consistent with the sector transformation strategy developed by the Global Alliance for Clean Cookstoves (GACC) and the World Bank’s “one goal, Results-Based Financing two paths” approach to achieving universal access to modern The Indonesia CSI recommends a Results-Based Financing energy in the East Asia and Pacific region. (RBF) financing approach to promote clean stoves. The RBF scheme disperses public resources against demonstrated, inde- Institutionalization pendently verified outputs or outcomes instead of project To institutionalize clean biomass cooking solutions, the study inputs.This distinguishing feature can mean more effective and recommends establishing and strengthening an institutional efficient use of public funds and improved support of mar- champion; a cross-sector coordination mechanism; and a plat- ket interventions. The conceptual framework for using RBF form for networking, communication, and knowledge shar- in programs to promote clean stoves could include three key ing. It is recommended that the MEMR’s Directorate-General building blocks—defined clean stoves, results-based incentives, of New and Renewable Energy and Energy Conservation and a monitoring and verification (M&V) system—supported (EBTKE) take the lead in developing a roadmap for scaling up by the pillars of institutional strengthening/capacity building access to clean biomass cooking solutions. A steering commit- and awareness-raising campaigns (figure 2). tee for national clean biomass cookstoves should be established, chaired by EBTKE and including the Ministries of Women’s and Children’s Empowerment, Health, Research and Technology, Scenario Analysis Results Industry, and Small and Medium Sized Enterprises, as well as How many clean biomass stoves will be needed to achieve uni- the Bureau of Standardizations. In addition, an Indonesian alli- versal access to clean cooking by 2030? To answer this ques- ance for clean cookstoves could play an instrumental role in tion, the study conducted a scenario analysis. It assumed that, promoting sector development. in 2030, about 18 million households will still use biomass as their primary cooking fuel.2 By 2020, at least 10 million clean Mutually Reinforcing Pillars to Scale Up stoves, representing 40 percent market penetration, will need Stove Access to be delivered to be on the path to universal access (figure 3).3 Creating an enabling environment is vital to scaling up access to clean stoves. It requires establishing and strengthening Figure 3. Scenario Analysis: Households Using Mainly stove standards, testing, and certification; conducting research Biomass for Cooking and development on improved and advanced stoves and fuel 25 processing technologies; and developing a master plan for a Millions of households 20 national clean biomass stoves program. Also vital are stimulat- 15 ing user demand for clean stoves and government support of the market and supply-side business development, which must 10 fit local conditions and target long-term sustainability. Where 5 stove supply chains already exist, the CSI strategy recommends 0 building awareness and capacity. In areas without stove sup- Baseline Universal access Universal access (2010) (2020) (2030) ply chains, significant time and resources must be invested in Scenario building local supply chains and educating both producers and Users of traditional Users of clean households in the use and benefits of the new stoves. biomass stoves biomass stoves INDONESIA: Toward Universal Access to Clean Cooking 3 Box 1. Indonesia Clean Stove Initiative In 2012, the World Bank, in collaboration with Indonesia’s Directorate of Bioenergy, Ministry of Energy and Mineral Resources (MEMR), launched the Indonesia Clean Stove Initiative (CSI). The broad aim is to scale up access to clean cooking solutions for the 40 percent of households who will likely continue using solid fuels beyond 2030. The Indonesia CSI comprises four program phases: (i) initial stocktaking and development of the implementation strategy; (ii) institutional strengthening, capacity building, and piloting of the strategy; (iii) scaled-up program implementation; and (iv) program evaluation and dissemination of lessons learned. Phase I activities have focused on in-depth assessments of household cooking fuel technologies and the existing stove market, review of the sec- tor’s policy and institutional framework, and lessons from the country’s two most successful clean cooking programs that can be applied to new ones promoting clean biomass cooking. Data collection for the phase I study included a national survey of the biomass stove supply chain, covering 17 representative provinces, and two national stakeholder consultation workshops held in May and July 2012. Workshop participants included key representatives of the Indonesian government, nongovernmental organizations, academia, and the private sector. A CSI technical committee, chaired by the MEMR’s Director of Bioenergy and including representatives of relevant ministries and national experts, was established to ensure the study would be completed in cooperation with the various stakeholders in accordance with existing policies. In addition, background case studies were prepared on the Kerosene-to-LPG Conversion Program, the Indonesia Domestic Biogas Programme, and biomass cookstove use in Yogyakarta and Central Java. To reach this ambitious target, the study recommends imple- Figure 4. Roadmap to Universal Access to Clean Cooking menting two consecutive national programs, using a phased Solutions by 2030 approach with gradual geographic expansion (figure 4). 2nd National 100 Program National market penetration (%) Clean biomass stove The Road Ahead Program Stage III The next steps for the Indonesia CSI are to establish stove stan- Stage II 40 dards and testing protocols, strengthen institutions and build Stage I Pilot stakeholder capacity, design and implement pilot programs, and Minimal penetration design and prepare the master plan for rollout of the national 2010 2014 2020 2030 program. Over the next 10–20 years, national economic devel- Year opment is expected to result in greater adoption of LPG. It is also expected that households who continue to use biomass Notes cooking fuel will do so with a clean stove. The public sector 1. GERES (Renewable Energy, Environment, and Solidarity Group), “Wood- will provide the private sector sufficient incentives and sup- fuel Flows in Central Java” (Aubagne, France: GERES, 2009). 2. The universal access scenario accounts for continued population port to enable it to reach its customers. Ultimately, the mar- growth and urbanization and increased adoption of LPG as the primary ket should decide which customers and locations to target and cooking fuel due to better infrastructure and higher income levels. which types of technologies and fuels to focus on, with the 3. This figure takes into consideration that most households use a mix of fuels and multiple cookstoves. freedom to innovate over time. This note summarizes the 2013 report, Indonesia: Toward Universal Access to Clean Cooking, published by the World Bank’s Asia Sustainable and Alternative Energy Program (ASTAE). The findings, interpretations, and conclusions expressed in this summary note are those of the authors and do not necessarily reflect the views of the Executive Directors of the World Bank, the Australian Agency for International Development, or ASTAE.