Indonesia Develops Hydrogen Fuel, But How Much Does It Cost?
The Ministry of Energy and Mineral Resources (ESDM) has revealed that the production cost of hydrogen fuel in Indonesia is currently still higher compared to other types of energy. In fact, its price remains above the economic value of 50% biodiesel (B50), which is currently one of the government’s mainstays in reducing fuel imports.
Minister of Energy and Mineral Resources Bahlil Lahadalia explained this cost comparison as a major challenge in developing the new renewable energy ecosystem. He compared the economic value of hydrogen with the non-subsidised B50 biodiesel production cost, which currently stands at approximately Rp 18,600 per litre.
Based on discussions with the research team, he stated that the energy cost produced from hydrogen is still above the price of B50. He noted that the ministry will continue to seek more efficient technologies to make hydrogen prices more competitive for industry and transportation within the country.
"The problem is that the cost of hydrogen is still expensive compared to other energy products," Bahlil said at the Global Hydrogen Ecosystem Summit and Exhibition (GHES) 2026 in Jakarta, as quoted on Wednesday (22/7/2026).
He explained that despite hydrogen’s advantage as a clean energy source, its energy cost has not yet been able to fall below the price of B50. "What is the cost difference with non-PSO B50? The industrial cost is around Rp 18,600 per litre. If we compare this to hydrogen, the energy cost is still above the price of B50. Hydrogen is still slightly more expensive," he detailed.
The current high price of hydrogen is seen as a consequence of the technology still being in the early stages of development in the country. However, the ministry believes that global geopolitical dynamics, which are making crude oil supplies increasingly difficult to secure, will push hydrogen to become a more logical choice in the coming years.
"But I am confident that with ongoing wars and uncertain geopolitics, and it no longer being easy to obtain oil from new blocks, it won’t be long before the price of hydrogen becomes much more competitive with other oil-based fuel sources," he concluded.