Indonesia to draft hydrogen policy once market potential emerges, says energy minister
Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, said the government will issue a policy on the production and utilization of hydrogen in Indonesia after the market potential is formed.
He said that currently the government has only issued a policy regulating electric vehicles and there are no regulations for hydrogen vehicles or markets in Indonesia.
Bahlil said on Tuesday, April 15, 2025,
Indeed, so far we have only made regulations for electric cars, not hydrogen.
“Now if there are already many (users), it is good and we see that the market potential (for hydrogen-based vehicles) already exists, then the government must make adjustments,”
He cited that the government did not rule out the potential for providing incentives to manufacturers who bring hydrogen cars to Indonesia. Later, the provision of incentives will be adjusted to the needs of hydrogen vehicle manufacturers and the government’s capabilities.
Bahlil said,
So we are monitoring who is entering, who is investing.
We ask for their proposals. We just have to see which variables the government presents to provide incentives so that they are visible when they invest,”
He said further that hydrogen is one of the government’s efforts to reduce the use of fuel oil in Indonesia, which currently has to import 1 million barrels of oil per day (bopd) to meet national needs.
The minister noted,
Our way to reduce (oil) imports is to utilize the potential of fossil fuel substitutes.
“It could be B40, electric batteries, battery cars, and also hydrogen,”
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Indonesia to draft hydrogen policy once market potential emerges, says energy minister, source
