Understanding hydrogen in Indonesia

Information correct as of September 2025

Authors: Andrew Digges, Nick Merritt, Kresna Panggabean and Salman Sembiring

• Market overview
• Project initiatives
• Development and support regime
• Challenges and opportunities

Market overview

As a general remark, Indonesia has not, at the date of preparing this summary, issued any regulation on hydrogen production, distribution and trade. It is expected that the upcoming New and Renewable Energy Law will provide a legal framework for the exploitation and utilisation of various new energy sources, including hydrogen.

By February 2025, the draft on New and Renewable Energy Law (Draft Bill) remained under discussion. It is anticipated to be passed in 2025.¹ Once passed, the Draft Bill will regulate key new and renewable energy sectors, including hydrogen, nuclear, coal bed methane, liquefied coal, and gasified coal, and will serve as a foundational legal instrument for Indonesia's energy transition.

In December 2023, the Ministry of Energy and Mineral Resources (MEMR) issued a National Hydrogen Strategy (the NHS). The NHS sets a comprehensive framework for developing a hydrogen-based energy ecosystem to support the Indonesia's transition toward Net Zero Emissions by 2060. The strategy is built on three pillars: reducing reliance on fossil fuels to enhance energy security; developing a domestic hydrogen market; and positioning Indonesia as a global exporter of hydrogen and its derivatives. The NHS further outlines a phased approach starting with low-carbon hydrogen pilot projects, progressing to green hydrogen adoption in transportation by 2031 and industry by 2041.²

Following the adoption of the NHS, in April 2025, the MEMR, with support from New Zealand Foreign Affairs & Trade and the Global Green Growth Institute, adopted the National Hydrogen and Ammonia Roadmap (the Roadmap). Demonstrating a clear commitment to achieving Net Zero Emissions by 2060, the Roadmap outlines a phased and actionable plan to scale hydrogen production, infrastructure, and market integration, beginning with regulatory groundwork and pilot projects, and culminating in full export capability.³

Project initiatives

Overall, Indonesia's hydrogen market is still pre-commercial. Several project initiatives have commenced in relation to hydrogen energy:

• Pertamina Hydrogen Refuelling Station:Pertamina NRE and Toyota are collaborating to develop a hydrogen ecosystem for transportation in Indonesia, beginning with the establishment of the country's first hydrogen refuelling station⁴. The initiative aims to enhance energy resilience and offer alternative fuel options, with long-term goals including hydrogen export by 2031. In February 2025, following the launch of the initial station, Toyota inaugurated a second hydrogen refuelling station in Karawang, West Java, further advancing the infrastructure needed to support hydrogen mobility.⁵

• PLN's Green Hydrogen Plant:PT PLN (Persero) (PLN) and the MEMR inaugurated Indonesia's first green hydrogen plant in Jakarta. This plant, operated by PLN's subsidiary (PLN Nusantara Power), is part of PLN's commitment to energy transition that has the capacity of producing up to 51 tons of hydrogen per year. The plant also leverages photovoltaic solar and geothermal energy, marking a significant milestone towards the nation's Net Zero Emission goals by 2060.⁶

• Aceh Green Hydrogen:In August 2023, MEMR issued a press release stating that it is supporting green hydrogen development, leveraging the country's abundant renewable resources and strategic location. PLN and PT Pupuk Iskandar Muda (a state-owned fertiliser company), in partnership with Augustus Global Investment, signed Memorandum of Understanding for green hydrogen production, targeting 35,000 tons per year at a plant in SEZ Arun Lhokseumawe, Aceh. The project aims to bolster energy transition and decarbonise transportation and industry sectors, aligning with Indonesia's net-zero goals by 2060.⁷

Development and support regime

As mentioned above, there is currently no regulatory framework governing the utilisation of hydrogen in Indonesia. The Draft Bill remains under discussion by the Indonesian Parliament. Nevertheless, the Indonesian government has expressed strong support for the development of renewable energy, including utilisation of renewable energy for hydrogen production.

Based on the Roadmap issued by the MEMR, the hydrogen development process is divided into three main timeframes:

(a) the initiation phase (2025-2034);

(b) the development and integration phase (2035-2044); and

(c) the acceleration and sustainability phase (2045-2060).

During the initiation phase (2025-2034), the government is expected to focus on implementing pilot projects, preparing the regulatory framework, developing incentive and financing schemes and building infrastructure and human resources. These efforts aim to establish a low-carbon hydrogen and ammonia ecosystem through national and international collaboration. Specifically, in preparing the regulatory framework, the Roadmap states that the Indonesian government aims to complete the development of regulations and applicable standards for hydrogen and ammonia utilisation by 2030. This will address safety standards, certification processes, and regulations to ensure that hydrogen can be used safely and efficiently. However, it remains to be seen how the process will be implemented, as this year marks the beginning of the initiation phase.⁸

Challenges and opportunities

Despite its potential, Indonesia faces significant challenges in developing its hydrogen ecosystem. The Roadmap highlights the lack of existing infrastructure, regulatory frameworks and market mechanisms as major barriers. Hydrogen production and distribution require substantial upfront investment. The absence of clear pricing, certification standards, and offtake agreements may hinder commercial viability. Additionally, coordination across ministries, industries, and international partners is essential to ensure alignment and avoid fragmented development. Addressing these gaps will be critical to unlocking the full potential of hydrogen in Indonesia's energy transition.

Nevertheless, Indonesia's hydrogen sector still presents promising opportunities as the country advances toward its Net Zero Emissions target by 2060. With abundant renewable energy resources and strategic geographic positioning, Indonesia is well-placed to develop green hydrogen for domestic use and future export. While the absence of a dedicated regulatory framework currently creates uncertainty, the anticipated issuance of the Draft Bill will mark a significant milestone in Indonesia's energy transition. Once enacted, the Draft Bill is expected to provide legal clarity and unlock large-scale hydrogen investments, positioning Indonesia as a key player in the regional and global hydrogen economy.

Footnotes