Jakarta, 24 March 2025 – The use of hydrogen is one of the solutions to reduce carbon emissions and support decarbonization, in line with Indonesia’s commitment to realizing national energy security as part of Asta Cita, which emphasizes that energy security is not only a necessity, but also a prerequisite for independence. 

Coordinator of Services and Supervision of Various Renewable Energy Businesses of the Ministry of Energy and Mineral Resources, Muhamad Alhaqurahman Isa, stated that hydrogen has great potential in the industrial sector, especially to replace fossil fuels in heavy industries such as steel and cement. In the transportation sector, hydrogen can be used for heavy vehicles, while in the energy sector, hydrogen and ammonia can be substitute fuels. 

“Demand for hydrogen is expected to continue to increase, so cross-sector cooperation is needed to increase investment in national hydrogen development.  Currently, the national hydrogen and ammonia roadmap is being finalized, which will include implementation strategies, action plans, as well as evaluation and monitoring,” Alhaqurahman said during a discussion and introduction for the Indonesian Green Hydrogen Community (KH2I), Towards a Green Hydrogen Ecosystem in Indonesia organized by the Institute for Essential Services Reform (IESR) on Monday (24/3/2025). 

According to Alhaqurahman, the success of hydrogen-based energy transition requires comprehensive policy support and sustainable investment. Research institutions also have an important role in preparing human resources, encouraging knowledge transfer, and conducting research and development for hydrogen implementation in Indonesia. Hydrogen-based energy transition is no longer an option, but a necessity to achieve energy security, and for that, the hydrogen ecosystem must be built together.

Fabby Tumiwa, Executive Director of IESR said, the use of fossil-based hydrogen is predicted to decline dramatically by 2050, with blue and green hydrogen replacing it. Green hydrogen in particular has great potential to become an export commodity, while strengthening the national energy market. In addition, green hydrogen can replace the role of coal which has been a source of state revenue, and play a role in decarbonizing the energy sector which is currently still dominant in using fossil energy.

“However, the biggest challenge in the development of green hydrogen is that the production cost is still quite high, ranging from USD 3.8 to 12 per kilogram. To make the price of green hydrogen on par with gray hydrogen, there are two key factors that must be achieved.  First, the price of electricity from renewable energy must be really cheap, ideally below 4 cents per kWh. Second, the price of the electrolyzer must be even lower. Although the price of electrolyzers continues to decline, the price of electricity from renewable energy is still a big challenge in Indonesia,” explained Fabby. 

Nevertheless, despite these challenges, Fabby said, the development of green hydrogen production technology continues. Electrolysis technology, both alkaline and other types of separation, is the main choice. In addition, new technologies such as the use of high-temperature thermal, which can be used for industries such as smelters, also provide hope. Indonesia also has geothermal potential that can be utilized to produce green hydrogen, which adds great opportunities for renewable energy development in the country.

On the other hand, Muhammad Taufik, Manager of Future Business Development, Pertamina NRE, said that his party has launched a clean hydrogen business project located at 17 supply points that have been assessed and in collaboration with global and domestic players. This project is spread across various regions in Indonesia, including Sumatra, Java, Kalimantan, Sulawesi, and Papua. This project aims to introduce green hydrogen as a more environmentally friendly solution to replace gray hydrogen that has so far been supplied externally. 

“In carrying out this project, there are four things that are our concern to ensure the success of the hydrogen project, namely ensuring market readiness and compliance, opening up potential economic incentives, demonstrating Indonesia’s commitment to Net Zero Emission (NZE), and opening up global opportunities. With these steps, we are committed to supporting the sustainable energy transition in Indonesia and strengthening its position in the global green energy market,” said Taufik. 

Matthieu Geze, President Director of PT HDF Energy Indonesia stated that Indonesia has a great opportunity to become a leader in hydrogen adoption, given the growing energy needs and existing geographical challenges.

“One of the biggest challenges is Indonesia’s geography, which consists of many islands. The focus so far has tended to be on large islands such as Sumatra and Java, which are more easily accessible by the State Electricity Company (PLN). However, hydrogen can be a solution for small and remote areas that have high logistics costs, making it very relevant for Indonesia, the country with the largest number of islands after the Philippines. The price of hydrogen is actually competitive with fossil-based energy, but with wider adoption, costs can be reduced,” said Matthieu. 

Meanwhile, Erina Mursati, Program Manager for Green Energy Transition Indonesia (GETI), IESR said, to strengthen collaboration between all parties in developing green hydrogen in Indonesia, IESR took the initiative to form the Indonesian Green Hydrogen Community (KH2I), with three main focuses, namely policy advocacy, market development and close collaboration across sectors, including government, industry, and research institutions, to accelerate the adoption and implementation of green hydrogen.

“With KH2I, it is hoped that Indonesia can accelerate the energy transition to green hydrogen, which not only plays a role in reducing carbon emissions, but also opens up new economic opportunities and strengthens national energy security,” added Erina. 

IESR is currently opening registration for individuals and organizations who want to join as members of the Indonesian Green Hydrogen Coalition (KH2I). For those interested in contributing to this initiative, registration can be done through the link s.id/EkosistemHidrogenHijau.