Minister Bahlil Admits Hydrogen Production Still Expensive, Calls for Efficient Technology

Jakarta - Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia has acknowledged that the cost of hydrogen production is currently still more expensive, particularly when compared to other energy sources. He therefore believes that developing more efficient technology is key for hydrogen to compete with conventional fuels.

According to Bahlil, based on his discussions with the National Research and Innovation Agency (BRIN), the price of hydrogen is still above the cost of using B50 biodiesel for non-public service obligation (non-PSO) purposes. “The non-PSO industrial cost is around Rp18,600. Using diesel can reach 3.5 to 4 kilometres per litre. When compared to hydrogen, the energy equivalent is still above the price of B50. Hydrogen is still slightly more expensive,” Bahlil said at the Global Hydrogen Ecosystem Summit and Exhibition (GHES) 2026 in Jakarta, Wednesday.

Bahlil stated that this condition is a challenge for the government, industry, and research institutions to deliver more efficient hydrogen production technology so that its price becomes more competitive. “Ladies and gentlemen, this is a challenge for all of us in order to find more efficient technology to make it competitive,” he said.

He is optimistic that hydrogen will become increasingly competitive in the future. According to him, global geopolitical uncertainty and the increasing difficulty of finding new oil reserves have the potential to drive up fossil fuel prices, thereby giving hydrogen better competitiveness. “So I think this is a very important step. Indeed, nothing is easy. Something new definitely has challenges, but if we can find more efficient technology, I am sure this will work,” he said.