Towards Green Hydrogen Production Pathway in Indonesia

Economic Research Institute for ASEAN and East Asia (ERIA) and Indonesia National Energy Council

No 2025-RPR-26 in Books from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: With abundant renewable energy potential across its five main islands, Indonesia is well-positioned to produce green hydrogen. However, not all renewable resources can be dedicated to hydrogen production, as a substantial share must continue to meet general electricity demand. The balance between green hydrogen supply and demand varies across islands – some face production shortfalls, while others have excess capacity. This underscores the importance of developing an integrated green hydrogen supply chain network that optimises transport modes and distances among the islands. This report explores the opportunities for green hydrogen to support Indonesia’s transition toward its net-zero energy target by 2060, in alignment with the ongoing revision of the National Energy Policy. It assesses the country’s renewable energy potential, hydrogen production capacity, projected demand in the power sector, and the design of a hydrogen supply chain network across Indonesia.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:era:eriabk:2025-rpr-26

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