Geopolitical tensions could make hydrogen cost-competitive: Bahlil

Speaking at the opening of the Global Hydrogen Ecosystem Summit & Exhibition 2026, Bahlil said high production costs remain a major obstacle to hydrogen adoption.

“It will not be long before hydrogen prices become much more competitive with other fuel sources,” Bahlil said.

He compared hydrogen’s current cost with industrial-grade B50 biodiesel, which sells for about Rp18,600 (US$1.15) per liter.

A commercial bus can travel 3.5 to 4 kilometers per liter on B50 biodiesel, while hydrogen remains slightly more expensive under current market conditions, he said.

However, conflicts in the Middle East, ongoing wars and growing challenges in developing new oil fields could push crude prices higher, narrowing hydrogen’s cost gap.

Bahlil said building a national hydrogen ecosystem supports President Prabowo Subianto’s goal of shifting from fossil fuels to renewable energy and strengthening national energy sovereignty.

“The challenge is developing more efficient technology so hydrogen becomes competitive,” Bahlil told government officials, industry leaders and international partners at the summit.

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Translator: Putu Indah Savitri, Yashinta Difa