Minister Bahlil: Hydrogen Prices Could Become More Competitive Due to Geopolitics

Energy and Mineral Resources Minister Bahlil Lahadalia has assessed that the price of hydrogen could become far more competitive compared to oil-based fuels as a result of geopolitical turmoil and the increasing difficulty of obtaining oil. “It will not be long before the price of hydrogen is far more competitive with other fuel sources,” Bahlil said at the opening of the Global Hydrogen Ecosystem Summit & Exhibition 2026 held in Jakarta on Tuesday. Bahlil acknowledged that the current challenge in developing hydrogen fuel is its higher cost when compared to other energy products. He compared the price of hydrogen with B50 biodiesel in the non-PSO category, or for industrial use, noting that the price of non-PSO B50 is around Rp18,600 per litre. “If using a bus, one litre covers 3.5 to 4 kilometres. When compared to hydrogen, it turns out hydrogen is still more expensive,” Bahlil said. However, Bahlil highlighted that ongoing geopolitical turmoil and the increasing difficulty of obtaining oil from new blocks will cause hydrogen prices to become far more competitive. He stated that developing the hydrogen ecosystem is a crucial step towards achieving energy self-sufficiency, in line with President Prabowo Subianto’s directive to convert from fossil fuels to new and renewable energy. “The challenge for all of us is how to obtain more efficient hydrogen technology so that it becomes competitive,” Bahlil said.