Indonesia is pursuing the development of hydrogen-powered mobility and bioethanol-blended fuels to diversify its transportation energy mix, reduce fuel imports and increase the use of domestically produced renewable energy sources.

The initiatives were highlighted during the Global Hydrogen Ecosystem Summit & Exhibition (GHES) 2026 in Jakarta, where government officials and state-owned enterprises outlined plans for hydrogen deployment. The Energy and Mineral Resources (ESDM) Ministry also detailed preparations for a nationwide ethanol-blending programme.

Hydrogen vehicles could compete with EVs within a decade

Energy and Mineral Resources Minister Bahlil Lahadalia said hydrogen-powered vehicles could emerge as a competitor to battery-electric vehicles (EVs) within the next five to 10 years as transportation technologies continue to develop.

Speaking at the opening of GHES 2026, Bahlil said advances in hydrogen production and infrastructure could enable the technology to compete with battery-powered mobility solutions.

"I believe that within the next five to 10 years, hydrogen will compete with battery-based electric vehicles," the minister said.

To support the development of a hydrogen ecosystem, Bahlil said the government plans to utilise Indonesia's 100-gigawatt (GW) solar power development programme to produce hydrogen fuel. Hydrogen produced using renewable solar energy would be classified as green hydrogen.

"Clean plus clean results in clean squared," Bahlil noted.

The minister said competition between hydrogen and battery-electric technologies has intensified globally, noting that Japan is active in hydrogen development while China currently leads the battery-electric vehicle sector. According to Bahlil, Indonesia's energy strategy is guided by three core principles: prioritising clean energy, ensuring high energy efficiency and producing energy domestically. He said hydrogen forms part of the country's broader strategy to reduce reliance on imported fuels and increase domestic energy production.

PLN identifies surplus hydrogen supply

State-owned electricity company PLN (Persero) said Indonesia has a surplus of hydrogen that could support the development of a domestic hydrogen transportation sector. PLN President Director Darmawan Prasodjo said during GHES 2026 that the company produces approximately 200 tons of hydrogen annually, of which only 75 tons are required for internal operations.

"We produce 200 tons, of which 75 tons are used. The remaining 125 tons are idle," Darmawan said.

The hydrogen is generated at PLN's power plants and is primarily used as a coolant for power generators, leaving most of the supply unused. To utilise the surplus, PLN has partnered with state energy company Pertamina to establish Hydrogen Refuelling Stations (HRS). Darmawan said the refuelling infrastructure is already operational and capable of supporting hydrogen-powered vehicles.

"The Hydrogen Refueling Station is already operational and ready for use. However, the cars are not yet available," he said.

Darmawan called on Minister Bahlil to coordinate with Jakarta Governor Pramono Anung on the potential introduction of hydrogen-powered buses into the TransJakarta public transportation system. He further added that PLN has begun discussions with commercial vehicle manufacturers from Japan, Germany and China regarding the procurement of hydrogen-powered buses. If the government proceeds with the plan, PLN and Pertamina are prepared to jointly procure and deploy the vehicles.

"Pertamina and PLN will jointly provide the buses. The hydrogen buses will then bear the logos of ESDM, PLN and Pertamina. We are collaborating to develop hydrogen-based transportation," Darmawan said.

Indonesia prepares E10 and E20 bioethanol rollout

Alongside its hydrogen initiatives, Indonesia is preparing to introduce ethanol-blended petrol to reduce dependence on imported fossil fuels. Minister Bahlil announced that the government is targeting the launch of E10 petrol, containing 10% ethanol, in 2027. This will be the first phase of a broader programme to introduce E20 fuel, containing 20% bioethanol, through a gradual rollout during 2028-2029.

According to Bahlil, the government has been studying a mandatory ethanol-blending policy since 2025 and is close to completing its assessment. The findings will be used to develop a national roadmap for E20 implementation.

"Our proposal for a mandatory ethanol policy has been underway since 2025, and our study is almost complete. E20 is part of the plan that we will finalise for implementation through 2028-2029," he said.

The minister said the programme is intended to reduce reliance on imported petrol through greater use of domestically produced renewable fuels. However, he stressed that the government will not proceed with a mandatory E20 policy until sufficient domestic ethanol production capacity has been established.

"We do not want to implement E20 only to end up importing ethanol. That is why we are preparing the industry first," Bahlil said.

Ethanol feedstock is expected to come from domestic agricultural commodities, including cassava, sugarcane and corn. Over the next one to two years, the government will focus on developing ethanol processing facilities and securing adequate raw material supplies before expanding blending requirements.

"For the next one to two years, we will prepare everything. After that, we will fully implement the E20 mandate," Bahlil said.

The minister noted that the government intends to follow the same phased approach used in Indonesia's biodiesel programme, which progressed from B10 to B20, B30 and currently B50 blends. In parallel, Indonesia is developing integrated sugarcane plantation and downstream processing projects to increase domestic ethanol production capacity. Bahlil cited Brazil's ethanol industry as an example, noting that processing facilities can switch production between sugar and ethanol depending on market conditions.

"When ethanol prices rise, production switches to ethanol. But when sugar prices increase, it switches back to sugar. We will adopt this dual model, and we are currently finalising preparations with several companies that will develop it," he said.

The hydrogen and bioethanol initiatives form part of Indonesia's broader strategy to diversify its energy mix and increase the use of domestically produced energy resources.