Indonesia's Hydrogen Revolution: Bridging Global Practices and Local Opportunities
Jakarta, Wednesday, 10 September 2025.
Indonesia is forging a path into a clean hydrogen future, aiming for a robust economy by 2025. While tech is ready, costs remain a hurdle. This is key for sustainable energy transition.
Indonesia’s Ambitious Hydrogen Plan
Indonesia is charging ahead with its clean hydrogen economy, aiming to set a global example by 2025. According to the ECADIN’s recent workshop, the country is adopting a dual approach: leveraging global insights and crafting local implementation pathways [1]. While the technology for hydrogen production is available, current costs, ranging from USD 3 to 8 per kilogram, hinder its economic viability [1]. Analysts suggest that achieving cost-parity with fossil fuels would require reducing these costs to USD 1.5 to 2 per kilogram [1].
Global Influence and Local Goals
Indonesia’s strategy includes positioning itself as both a domestic user and a potential exporter of clean hydrogen. This aligns with international efforts such as those by Japan’s NEDO, which is actively funding projects to ease price disparities and facilitate public-private partnerships [1]. By integrating lessons from global practices, Indonesia plans to overcome economic barriers and make hydrogen a key player in its energy transition [1].
Technological Readiness Meets Economic Challenges
Clean hydrogen offers a promising solution for decarbonising heavy industries such as steel and chemicals. Yet, the economic challenge remains significant. The cost of production must drop significantly to compete with traditional energy sources. Indonesia acknowledges this hurdle and is keen on making policy adjustments to improve certification standards, carbon pricing, and risk reduction [1].
International Collaborations and Future Outlook
Indonesia’s clean hydrogen ambitions are not isolated. The country’s National Hydrogen Strategy and Roadmap for Hydrogen and Ammonia, launched in recent years, highlight a commitment to global clean energy agendas [6]. This plan not only aims to transform Indonesia’s energy landscape but also to invite significant domestic and international investments [6].
A Potential Game Changer for Energy Transition
Indonesia’s journey towards a hydrogen economy is a testament to its commitment to sustainable energy solutions. The nation is poised to play a pivotal role in the global energy transition, provided it can navigate its economic challenges. With strategic collaborations and policy enhancements, Indonesia may well lead the charge in Asia’s clean energy revolution [1][6].