ASIATODAY.ID, JAKARTA — The Indonesian government is intensifying its efforts to shift away from fossil fuel dependence toward clean energy.
This strategic push was marked by the official launch of the Global Hydrogen Ecosystem Summit (GHES) 2026 by Deputy Minister of Energy and Mineral Resources Yuliot on Tuesday, February 10, 2026.
Hydrogen is being positioned as a cornerstone of Indonesia’s future energy transition and a gateway for the country to enter the global green energy landscape.
“Hydrogen is a zero-carbon energy carrier, alongside electricity. It is a crucial part of our efforts to reduce emissions and achieve Net Zero Emissions by 2060 or sooner,” Yuliot said during the GHES 2026 launch in Jakarta.
Hydrogen and Ammonia Officially Anchored in the Energy Transition
The government reaffirmed its commitment to climate change mitigation by designating hydrogen and ammonia as New Energy Sources within Indonesia’s national energy framework.
Over the long term, the use of fossil fuels will be gradually reduced in line with the accelerated adoption of new and renewable energy (NRE).
Indonesia’s current hydrogen consumption stands at approximately 1.75 million tonnes per year, largely driven by industrial demand. Around 88 percent is used for urea production, 4 percent for ammonia, and 2 percent for oil refining.
“Going forward, hydrogen will play a vital role in hard-to-abate sectors, such as long-distance transportation, shipping, aviation, steel production, and industrial heating,” Yuliot explained.
Strong Fundamentals, Indonesia Eyes Asia-Pacific Hydrogen Hub Status
Yuliot emphasized that Indonesia has a strong opportunity to become a key hydrogen and ammonia player in the region. Abundant renewable energy resources, firm climate commitments, and Indonesia’s strategic position along major international trade routes form a solid foundation.
“With these advantages, Indonesia has the potential to become a hydrogen and ammonia hub in the Asia-Pacific region,” he said.
Targeting 199 Tonnes of Green Hydrogen in 2026
In line with the GHES 2026 launch, the Ministry of Energy and Mineral Resources has set an ambitious target to market more than 199 tonnes of green hydrogen domestically in 2026. The target has been incorporated as a new performance indicator for the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE).
EBTKE Director General Eniya Listiani Dewi said the government has prepared a National Hydrogen Roadmap aligned with industrial action plans and the National Energy Master Plan (RUEN).
“In 2026, EBTKE will have an additional KPI—green hydrogen deployment. The target is more than 199 tonnes per year, and this must be achieved,” Eniya stated.
Regulatory Uncertainty Remains a Key Challenge
Despite its strong potential, the development of Indonesia’s hydrogen market continues to face significant regulatory challenges, particularly regarding price certainty.
To date, hydrogen transactions for the energy sector remain largely business-to-business, as there is no official reference price, unlike in the industrial sector.
“If hydrogen is produced using electricity, what should the price be? This remains unresolved. There is no price reference for the energy sector yet, while industrial pricing already exists,” Eniya said.
To address these issues, the government is revising Presidential Regulation No. 112 of 2022, including provisions for electricity-based hydrogen pricing and policy debottlenecking.
The ministry is also preparing regulations on hybrid power plants to govern the use of surplus renewable electricity.
Five Green Hydrogen Projects in the Pipeline
National green hydrogen production will rely on electrolysis using surplus renewable power, including geothermal and solar energy. The government is also exploring hydrogen potential from excess grid electricity and industrial by-products, such as those from chlor-alkali plants operating in industrial zones.
Under the National Hydrogen and Ammonia Roadmap, five strategic green hydrogen projects have been identified in North Sulawesi, Ulubelu, East Java, Sumatra, and East Nusa Tenggara.
“The status of these projects will be clarified in July. Last year they were limited to memorandums of understanding; now we are moving into concrete follow-up action plans,” Eniya noted.
GHES 2026 as a Platform for Ecosystem Consolidation
The launch of GHES 2026 is expected to serve as a key platform to strengthen coordination among government institutions, industry players, and global stakeholders.
The objective is clear: to accelerate green hydrogen adoption, build a domestic hydrogen market, and fast-track Indonesia’s low-carbon energy transition.
With a more mature strategy and strengthened regulatory support, hydrogen is no longer a distant concept—it is emerging as Indonesia’s new strategic weapon in the global race for green energy leadership. (AT Network)
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