Indonesian Political, Business & Finance News

Bahlil Commences Dual-Fuel Vehicle Trial Using Diesel and Hydrogen

| Source: CNBC Translated from Indonesian | Energy
Bahlil Commences Dual-Fuel Vehicle Trial Using Diesel and Hydrogen
Image: CNBC

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia is promoting the use of dual energy through a combination of diesel fuel and hydrogen for the national transportation sector. This initiative is considered capable of accelerating the transition from fossil energy to clean energy while simultaneously reducing dependence on crude oil imports. Bahlil stressed that the utilisation of hydrogen as a companion to biofuels such as B50 is important for maintaining Indonesia’s energy sovereignty. “This is a form of the government’s commitment to advancing the implementation of hydrogen in the Republic of Indonesia. The development of hydrogen is in line with President Prabowo’s vision, because hydrogen is one of the alternative energies,” he said at the Global Hydrogen Ecosystem Summit and Exhibition (GHES) 2026 in Jakarta on Tuesday. Indonesia currently still depends on oil imports averaging 1 million barrels per day (bpd) to meet national needs. National oil demand is around 1.6 million bpd, while domestic production is still in the range of 600,000 bpd. Oil imports will be reduced with the implementation of 50% biodiesel blending (B50). With B50, oil imports are estimated to decrease by 250,000-300,000 bpd. “So now our total crude imports are still around 700 to 750,000 barrels per day from the difference of 1 million barrels per day,” he said. “But we have agreed that this earth must be bequeathed to our children and grandchildren in a better condition, so we in Indonesia, under the direction of the President, remain steadfast in the decision that we will achieve net zero emissions by 2050 or 2060. Therefore, we must prepare the breakdown now,” he added. Bahlil emphasised that the government is pushing for hydrogen because its energy sources can originate domestically. “Today we will promote hydrogen. In my opinion, hydrogen is one of the alternatives because it has three main functions. First, it is a global demand. Second, it is part of downstreaming. Because hydrogen can be produced from water, gas, and low-calorie coal. So we can convert our low-calorie coal into hydrogen with technology. We have water,” he explained. However, he acknowledged that the challenge in developing hydrogen is that its selling price is still more expensive, including when compared to non-subsidised diesel fuel. “The problem is that the cost of hydrogen is still high compared to other energy products. I discussed this with the Deputy Head of BRIN, Mrs Eniya. The cost difference for non-PSO B50 is around Rp 18,600. If you use diesel, it can reach 3.5 to 4 kilos per litre. When compared to hydrogen, the energy output is still more expensive than B50. Hydrogen is still slightly more expensive,” he explained. “This is a challenge for all of us to find more efficient technology to make it competitive,” he added. Although the production cost of hydrogen is currently relatively high, Bahlil believes this technology will become more competitive within the next five to ten years. He also plans to promote the use of hydrogen-powered buses for public transportation in the DKI Jakarta area as a pilot project. “Regarding what Mr Darmo (President Director of PLN) said about the bus, I will try to communicate with the Governor of DKI to utilise this. Whatever assistance we can provide from a regulatory standpoint, I will help,” he stated. Director General of New, Renewable Energy and Energy Conservation (EBTKE) at the Ministry of ESDM, Eniya Listiani Dewi, said that the use of dual fuel in vehicles can save fuel oil consumption. “We request direction from the Minister to launch a dual fuel system. So the fuel usage in one place is not a single type, but two types, namely biodiesel and hydrogen gas,” Eniya said at the same event. “This can reduce or save fuel. So with gas entering the engine, fuel consumption can be reduced. This will not only be for buses, but also for passenger cars, drones, forklifts, and hydrogen gas stoves,” she said. “This hydrogen utilisation was directed by the Minister last year. We are accelerating cooperation with industries and various academic stakeholders to create a hydrogen transportation corridor. This cooperation is also supported by BRIN and international cooperation with various countries to present a hydrogen road test later,” she added. Eniya also mentioned that her party has 93 hydrogen ecosystem development initiatives and the projects are already spread throughout Indonesia. “So these projects will generate Rp 32 trillion in investment which we will oversee,” she added. The pilot project for the Hydrogen Diesel Dual Fuel Bus or Bus H2 DDF is the result of modifying a diesel-engined bus fleet belonging to Perum DAMRI into a vehicle that uses a combination of diesel fuel and hydrogen. This programme is an initial step towards the implementation of lower-carbon and sustainable hydrogen transportation. According to records from the Ministry of ESDM, the trial programme was developed through cooperation between the Ministry of ESDM, PT PLN (Persero), Perum DAMRI, PT Sucofindo (Persero), and PT Tritunggal Prakarsa Global. The development of the H2 DDF Bus is directed at reducing the use of diesel fuel by replacing a portion of it with hydrogen.

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