Indonesia has enormous renewable energy potential, positioning it to become a major producer of green hydrogen. As a clean energy carrier, green hydrogen can play a crucial role in decarbonizing sectors that are difficult to reduce emissions, such as industry and heavy transportation, enhancing energy security, and enabling greater integration of renewable energy through its function as a flexible energy storage and load carrier. Furthermore, it presents an opportunity to expand access to clean energy in remote areas.

Indonesia’s industrial sector already relies on hydrogen, particularly in oil refineries and fertilizer production, and also plays a role in supplying hydrogen through existing gas and energy companies. This positions the industry as both a current user and a future demand driver. Hydrogen serves as a key feedstock in several industrial processes and also has the potential to be an alternative fuel for high-temperature operations that are difficult to electrify. As demand for low-carbon hydrogen is expected to grow in the coming decades, production capacity will need to be expanded to ensure a sustainable supply, supported by improvements in infrastructure such as pipelines, storage, and distribution systems. Strengthening supply and infrastructure will be crucial for Indonesia to build a hydrogen ecosystem capable of meeting its long-term industrial needs.

IESR is seeking qualified experts and organizations to support the large-scale implementation of hydrogen technology to support industrial decarbonization. This study will identify how hydrogen makes a significant contribution to industrial decarbonization, evaluate production capacity and technology for Indonesia, and outline the development directions needed to build a competitive hydrogen supply system. The findings will inform national planning and clarify hydrogen’s appropriate role in Indonesia’s broader industrial transition.