TEMPO.CO, Jakarta - Geopolitical turmoil and an oil supply crunch could send hydrogen prices to become much more competitive in comparison to fuel, according to Energy and Mineral Resources Minister Bahlil Lahadalia.
"It won't be long before hydrogen prices are much more competitive with other fuel sources," Bahlil said at the opening of the Global Hydrogen Ecosystem Summit & Exhibition 2026 held in Jakarta on Tuesday.
Bahlil acknowledged that the current challenge in developing hydrogen fuel is its higher cost compared to other energy products.
He also compared the price of hydrogen with B50 biodiesel for industry purposes (non-PSO). The price of non-PSO B50 is around Rp18,600 per liter.
"For a bus, one liter can cover 3.5–4 km. Comparing hydrogen and B50 use [for buses], hydrogen prices run slightly higher," Bahlil said.
However, Bahlil highlighted the current geopolitical turmoil in the Middle East, ongoing wars, and the difficulty of obtaining oil from new blocks.
According to Bahlil, these various factors will cause hydrogen prices to become much more competitive.
Therefore, Bahlil stated that developing a hydrogen ecosystem is a crucial step towards achieving energy self-sufficiency.
Furthermore, hydrogen development aligns with President Prabowo Subianto's directive, which instructed Bahlil to transition from fossil fuels to new and renewable energy.
"The challenge becomes how to gain more efficient hydrogen technology," Bahlil said.
The Global Hydrogen Ecosystem Summit and Exhibition (GHES 2026) is a forum that brings together government, business entities, industry, academics, international partners, and other stakeholders to strengthen the development of the hydrogen ecosystem in Indonesia.
The holding of GHES 2026 affirms Indonesia's commitment to promoting the use of hydrogen in the transportation, industrial, logistics, and port sectors.
In its initial phase, hydrogen uses will be focused on transportation to cut fossil fuel and vehicle emissions.
Read: Hydrogen Fuel Proposal for TransJakarta Buses Set for Discussion
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