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Vol 40 No 1 (2025): January

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Submitted
Dec 20, 2023
Accepted
Sep 18, 2024
Published
Jan 15, 2025
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Does the Use of Solid Cooking Fuels Increase Household Out-Of-Pocket Medical Expenses? Evidence from Indonesia

https://doi.org/10.22146/jieb.v40i1.11412
Theo Ojahan Pardamean Siagian
Badan Pusat Statistik- Statistics Indonesia, Jakarta, Indonesia
Djoni Hartono
djoni.hartono@gmail.com
Department of Economics, Faculty of Economics and Business, Universitas Indonesia, Depok, 16424, Indonesia

Corresponding Author(s) : Djoni Hartono

djoni.hartono@gmail.com

Journal of Indonesian Economy and Business, Vol 40 No 1 (2025): January

Abstract

Introduction/Main Objectives: The objective of this study is to assess how the utilization of solid cooking fuels influences out-of-pocket medical expenses incurred by households in Indonesia. Background Problems: Solid cooking fuel use remains prevalent in Indonesia, negatively impacting the health of household members, and consequently affecting associated medical expenses as well. Novelty: To the best of the authors’ understanding, this study is the first to explore how the use of solid cooking fuels affects the out-of-pocket medical expenses of households in Indonesia. Research Methods: This study employs instrumental variables to address existing endogeneity issues. Finding/ Results: On average, households using solid cooking fuels show a 0.0041 increased proportion of out-of-pocket medical expenses to total household expenditure compared to households using non-solid cooking fuels. Conclusion: The Indonesian government can reduce household medical expenses by improving the use of cleaner cooking fuels. Implementable policies include providing assistance with clean energy cooking equipment and ensuring the availability of clean energy in areas in need.

Keywords

solid cooking fuels out-of-pocket medical care expenditure household instrumental variables
Siagian , T. O. P., & Hartono, D. (2025). Does the Use of Solid Cooking Fuels Increase Household Out-Of-Pocket Medical Expenses? Evidence from Indonesia. Journal of Indonesian Economy and Business, 40(1), 44-56. https://doi.org/10.22146/jieb.v40i1.11412
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Author Biographies

Theo Ojahan Pardamean Siagian , Badan Pusat Statistik- Statistics Indonesia, Jakarta, Indonesia

Theo Ojahan Pardamean Siagian is a civil servant at BPS–Statistics Indonesia since 2013. He earned his bachelor’s degree in statistics at Sekolah Tinggi Ilmu Statistik , Indonesia. He did his master’s degree in economics at Universitas Indonesia, Indonesia.

Djoni Hartono, Department of Economics, Faculty of Economics and Business, Universitas Indonesia, Depok, 16424, Indonesia

Djoni Hartono is a Professor in the Department of Economics at the Faculty of Economics and Business, Universitas Indonesia. He earned his B.S. degree in mathematics from Bogor
Agricultural University, and his Master’s and Ph.D. degrees in economics from Universitas
Indonesia. He teaches subjects including mathematical economics, econometrics, energy
economics, regional economics, and economic modeling. His research interests encompass the
economy-wide impact of energy policies as well as regional and economic development. He also specializes in computable general equilibrium modeling. Currently, he serves as the President of the Indonesian Regional Science Association and is the Head of the Research Cluster on Energy Modeling and Regional Economic Analysis.

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