T

he transition from kerosene to gas stoves in recent years reflects the progress being made across the country. Today, over 80 percent of Indonesia’s households have gas. That’s 92 percent in the Top 20 cities, 84 percent of other urban homes and 75 percent of rural. Very soon, the old kerosene stove will become a collector’s item. But gas bottles exploding all too often are not helping the collective march forward.

Another key indicator is access to electricity. In comparison to other developing countries in the region, Indonesia is not doing as well as you would expect. According to the International Energy Agency, China leads with near-total electrification across the country. India, the other giant in the region achieved 65 percent electrification of all households in 2008, but the actual number of people without access to electricity went up due to population growth. Indonesia also had 65 percent penetration but surprisingly, only 32 percent of rural homes had access. It is a surprising statistic only in contrast, because half the rural households in India can turn a light on at home. Even Pakistan with 46 percent penetration, has stolen a march on Indonesia in the realm of rural electrification.

Despite that reality, ownership of kitchen appliances compares rather favourably. Today, 68 percent of households in the big cities, 37 percent of other urban homes and 22 percent of rural have a refrigerator. Even freezers are gaining in popularity, with 5 percent of big-city homes using one already. The growth in the number of refrigerators and freezers each year reflects changing lifestyles not only for the affluent minority, but for the country as a whole. That trickle-down is either “fast enough” or “too slow”, depending on your own socio-political perspective.

Moving on from the basic refrigerator, ownership of other “small appliances” in the kitchen such as blender/food processor/juice extractor is also curving upwards. Now, 42 percent of households in the big cities have one. That includes the 10 percent who have a toaster and the 3 percent who own a microwave oven. If you are a frequent reader of this column, you will notice that 3 and 5 are numbers that crop up often. That’s because they not only own the freezers and the microwaves but also travel by air, have the credit cards, the new cars and all the other nice things that so many of us lust after for the better part of our lives. In sharp contrast, dishwashers are almost non-existent in Indonesia only because somebody else is doing the washing up!

Demand remains robust, in keeping with consumer confidence levels around the country. As at June 2010, 4 percent of homes in the Top 20 cities were planning to buy a refrigerator in the next 12 months. Other urban households led demand with 7 percent, followed by rural homes at 5 percent.

That includes first timers, as well as the replacement market. But if you were to ask the manufacturers and retailers which geography they are still focused on, you would probably get the order in reverse. Apart from geography, it is Indonesia’s growing middle class that is showing interest in these modern conveniences.

The picture of the future is geographically similar for the small appliances market. The exceptions are microwave ovens still restricted to the big cities, while toasters will become more popular in other urban areas in the months ahead. In a country the size of Indonesia, 1 percent of urban households translates to a very large number of microwave ovens and toasters. As incomes grow around the country and prices decline around the globe, the prospect are rosy for manufacturers seeking a share of this growing market.