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Hydrogen vehicle push risks hitting early roadblock over costs

Cost is the major challenge facing the government's hydrogen vehicle ambition, primarily stemming from a need to develop systems that can produce cheap green hydrogen and the stark affordability of battery electric vehicles today.

Divya Karyza (The Jakarta Post)
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Sun, July 26, 2026 Published on Jul. 25, 2026 Published on 2026-07-25T15:14:54+07:00

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The sign for a hydrogen refueling station (HRS) stands against clear skies in Senayan Central Jakarta, in this undated handout photo from state electricity firm PLN. The sign for a hydrogen refueling station (HRS) stands against clear skies in Senayan Central Jakarta, in this undated handout photo from state electricity firm PLN. (PLN/-)

T

he government’s ambition to put hydrogen-powered vehicles on Indonesian roads is facing a reality check, as early trials and cost calculations reveal a significant gap between the country’s clean energy goals and the commercial viability needed for mass adoption.

The initiative stems from the fact that all coal-fired power plants operated by PLN produce hydrogen, as a byproduct used to cool generators, but much of it remains unused.

The state electricity company estimates that only 75 of the 200 tonnes of hydrogen produced annually are utilized, leaving a majority 62.5 percent idle.

Energy and Mineral Resources Minister Bahlil Lahadalia expressed confidence that hydrogen vehicles would be able to compete with battery electric vehicles (BEVs) in the next five to 10 years, pointing to the government's 100-gigawatt solar power plant program as a key instrument for producing green hydrogen via electrolysis.

The energy ministry has launched 93 hydrogen development projects across the archipelago, and Eniya Listiani Dewi, the ministry’s new and renewable energy and energy conservation director general, estimates they could attract investments up to Rp 32 trillion (US$1.78 billion).

PLN says it has partnered with state energy giant Pertamina to distribute hydrogen for transportation and is also lobbying the Jakarta administration to integrate hydrogen buses into the city’s Transjakarta fleet.

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State-owned bus operator Perum DAMRI has meanwhile started testing hydrogen vehicles, albeit not the zero-emission models envisioned by the government.

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