Indonesia Builds Hydrogen Ecosystem with Rp 32 Trillion Investment Potential

The Ministry of Energy and Mineral Resources (ESDM) is continuing its efforts to accelerate the development of a hydrogen ecosystem as part of the energy transition. The potential investment from the development of this green fuel is estimated to reach around Rp 32 trillion.

Director General of New, Renewable Energy and Energy Conservation (EBTKE) at the Ministry of ESDM, Eniya Listiani Dewi, stated that there are currently 93 hydrogen ecosystem development initiatives spread across various regions of Indonesia.

“We currently have 93 hydrogen ecosystem development initiatives, with the projects already mapped out and spread throughout Indonesia. So these projects will generate Rp 32 trillion in investment that we will oversee,” Eniya said at the Global Hydrogen Ecosystem Summit and Exhibition (GHES) 2026 in Jakarta on Tuesday (21/7/2026).

According to her, the ministry will oversee all these projects to ensure their realisation, in line with the Minister of ESDM’s directives. One focus is delivering hydrogen projects that support the diesel replacement programme, namely reducing the use of diesel-fired power plants in remote areas.

She cited a project in Sumba, which is targeted to reach commercial operation date (COD) by 2028. A similar project is also being developed on Rengit Island in collaboration with state electricity company PT PLN (Persero).

Eniya explained that implementing this system could significantly reduce electricity generation costs. Currently, diesel-based electricity costs around Rp 20,000 per kWh, or approximately US1perkWh, whichcouldbereducedtoaroundUS 25 cents per kWh.

“So this is one of our efforts to prove the concept of using solar power plants for use in remote areas and generating hydrogen as energy storage,” she said.