Indonesia Develops Hydrogen as New Fuel, Bahlil Explains Rationale
Energy and Mineral Resources Minister Bahlil Lahadalia has revealed the reasoning behind the domestic utilisation of new and renewable energy, particularly hydrogen. According to him, hydrogen energy serves three main functions.
He stated that hydrogen could become an alternative energy source in Indonesia. In line with this, the shift towards clean energy sources is also considered a global imperative.
Furthermore, Bahlil assessed that hydrogen could support the government’s downstream processing programme. Indeed, hydrogen can be obtained from various sources and is not limited to a single type of feedstock.
"Today we will promote hydrogen. In my view, hydrogen is one of the alternatives because it has three main functions. The first is a global demand. The second is that it is part of downstream processing," he said at the Global Hydrogen Ecosystem Summit and Exhibition 2026 in Jakarta.
Hydrogen can be produced from water, gas, and even coal. Bahlil believes Indonesia possesses abundant sources for hydrogen production, which can be harnessed as an alternative energy source domestically.
"So we can transform our low-calorie coal fossils into hydrogen using technology. We have the water," he added.
Moreover, Indonesia’s gas resources are considered plentiful, supported by development plans for several domestic oil and gas blocks, some of which could be utilised for hydrogen production.
The next function is as an instrument to achieve carbon emission reduction targets, or net-zero emissions, by 2050-2060. Through integration with renewable energy power plants, hydrogen is expected to significantly lower CO2 emissions.
"On that basis, if we can accomplish this, we can reduce CO2, and Indonesia’s target for net-zero emissions in 2050 to 2060 can truly be realised," he explained.
Thus, Bahlil believes there is no need to doubt the availability of hydrogen in Indonesia. However, he stressed that there is still homework to be done before hydrogen can be widely utilised, namely the issue of its price, which remains relatively more expensive compared to other renewable energy sources.
"What I want to convey, ladies and gentlemen, is that the raw materials for hydrogen belonging to our nation should not be doubted, and this is something that must continue to be promoted," he concluded.