Jakarta, September 12, 2025 – In addition to its emission reduction targets outlined in its Nationally Determined Contribution (NDC), Indonesia, through President Prabowo Subianto’s vision, also aims for energy security and independence. To achieve this, comprehensive decarbonization of all emission-producing sectors is essential.
The Institute for Essential Services Reform (IESR) assesses that the widespread use of renewable energy sources such as solar and wind has the potential to produce green hydrogen, which plays a strategic role in decarbonizing challenging sectors such as heavy transportation and industry. Several feasibility studies have identified several obstacles to hydrogen project development in Indonesia, including economic challenges and unstable demand for green hydrogen.
“To encourage domestic green hydrogen development, several steps need to be taken, including bankable offtake agreements, supporting infrastructure, and consistent, stable, and predictable policy support to ensure investor confidence in investing in hydrogen in Indonesia,” explained Fabby Tumiwa, Chief Executive Officer (CEO) of IESR, in the Public Webinar “Road to IETD 2025: Examining Global and Indonesian Green Hydrogen Development,” organized by IESR in collaboration with the British Embassy in Jakarta.
Despite having a National Hydrogen Development Roadmap, Indonesia still lacks a specific policy framework governing hydrogen development. This was conveyed by Muhammad Alhaqurahman Isa, Coordinator of Services and Supervision of Various New and Renewable Energy Businesses at the Ministry of Energy and Mineral Resources.
“In accordance with the roadmap (for hydrogen development), we are currently in phase 1, namely preparing the ecosystem, including the policy framework for hydrogen development in Indonesia,” said Haqi.
The agency is currently drafting government regulations on hydrogen governance, covering taxonomy, supply chain, pricing, subsidies, incentives, institutions, certification, and licensing.
Sam Bartlett, Director of Standards, Green Hydrogen Organizations (GH2), stated that hydrogen development requires a new, more specific perspective.
“We need to directly target sectors that will be involved with hydrogen, such as fertilizers, the refining industry, aviation, and the steel industry. Within the selected sectors, determine which areas will be involved with hydrogen,” said Bartlett.
Juniko Nur Pratama, Program Manager for Industrial Decarbonization at IESR, stated that the industrial sector is one of the potential sectors requiring green hydrogen in its decarbonization efforts.
“Industries like steel require high energy intensity. The use of green hydrogen can replace coal in the iron ore refining process,” said Juniko.
PT PLN Persero has conducted a series of trials and the use of hydrogen for transportation and as a blending agent for ammonia in the fertilizer industry, as stated by Ricky Cahya Andrian, VP of Business Development at PT PLN Persero.
“We developed hydrogen because we recognize that not all sectors can be decarbonized with electricity (electrification). Currently, the technical and safety risks have been addressed, but we are still working to lower the Cost of Generation (HPP) to make it more attractive to consumers,” said Ricky.
