Jakarta, INTI - The government continues to accelerate the development of national hydrogen ecosystem through 93 project initiatives spread across various regions of Indonesia. The government revealed that the total investment value is approximately Rp32 trillion.
This development is aimed at supporting the decarbonization process in the industrial, transportation, and electricity sectors while strengthening national energy security. This was conveyed at the opening of the Global Hydrogen Ecosystem Summit (GHES) 2026 at the Jakarta International Convention Center (JICC) on Tuesday, July 21, 2026.
Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, stated that hydrogen is a future energy source that supports President Prabowo Subianto's Asta Cita agenda, particularly in achieving energy independence and strengthening national downstream development.
"Hydrogen is a crucial alternative energy source amidst uncertain global geopolitical conditions. This situation forces each country to protect its energy needs by leveraging its respective comparative advantages," said Bahlil.
The development of a hydrogen ecosystem from upstream to downstream is considered not only to produce low-emission energy but also to create added value, attract investment, increase national industrial competitiveness, and create new jobs.
However, the still-high cost of hydrogen production remains a major challenge. Bahlil assessed that hydrogen prices are still relatively high compared to other energy sources, including B50 biodiesel. However, he is optimistic that technological developments and changing geopolitical dynamics will make hydrogen prices more competitive.
Other Projects are Also on the Way
In an effort to accelerate the development of this ecosystem, the government introduced the Green Hydrogen Corridor connecting Jakarta, Karawang, and Patimban. ESDM, together with PT PLN (Persero) and Perum DAMRI, also launched a pilot project for Hydrogen Diesel Dual Fuel (H2 DDF) buses as an initial step in utilizing hydrogen in the transportation sector.
ESDM’s Director General of New, Renewable Energy, and Energy Conservation (EBTKE), Eniya Listiani Dewi, stated that 93 hydrogen project initiatives currently being developed in various regions have generated potential investment of around Rp32 trillion.
The government is also promoting the use of hydrogen in dedieselization programs in several regions, including Sumba, which is targeted for commercial operation in 2028, and Rote Island through a collaboration with PLN.
The program is projected to reduce the basic cost of electricity supply from around USD 1 to USD 0.25 per kilowatt-hour.
Conclusion
The government is accelerating the development of a national hydrogen ecosystem through 93 projects with an investment value of approximately Rp32 trillion to support decarbonization in the industrial, transportation, and electricity sectors. Minister Bahlil Lahadalia assessed that hydrogen plays a crucial role in strengthening national energy independence and resilience. The government also introduced the Green Hydrogen Corridor connecting Jakarta, Karawang, and Patimban and launched a pilot project for Hydrogen Diesel Dual Fuel (H2 DDF) buses.
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