Indonesia Hydrogen Generation Market Report Size Share Growth Drivers Trends Opportunities & Forecast 2025–2030

Indonesia hydrogen market grows with industrial decarbonization and renewable energy expansion, valued at $2.145 Bn.

Region:Asia

Author(s):Rebecca

Product Code:KRAB1020

Pages:89

Published On:December 2025

About the Report

Base Year 2024

Indonesia Hydrogen Generation Market Overview

  • The Indonesia Hydrogen Generation Market is valued at USD 2,145 million, based on a five-year historical analysis. This growth is primarily driven by increasing industrial decarbonization efforts and net-zero commitments across Southeast Asia, propelling demand for hydrogen as a clean alternative in heavy industries. The expansion of renewable energy capacity in the region, including Indonesia, underpins the development of green hydrogen by enabling cost-effective electrolysis pathways.
  • Key players in this market include PT Pertamina (Persero), Air Products and Chemicals, Inc., PT Pupuk Indonesia (Persero), PT PLN (Persero), Linde plc, Shell Indonesia, TotalEnergies, Mitsubishi Corporation, Hyundai Motor Company, Siemens AG, ENGIE, BP p.l.c., Toshiba Energy Systems & Solutions Corporation, JGC Corporation, PT Wijaya Karya (Persero) Tbk. These companies play a significant role in driving growth and maintaining high standards in hydrogen generation and utilization.
  • In 2024, Indonesia's government announced the National Hydrogen and Ammonia Roadmap, which aims to establish legal and infrastructural foundations, stimulate regulatory clarity, and support deployment through 215 action items structured across development phases. This roadmap is anticipated to generate significant revenue and create numerous jobs as part of the country’s broader hydrogen ecosystem strategy.
Indonesia Hydrogen Generation Market Size

Indonesia Hydrogen Generation Market Segmentation

By Type:The hydrogen generation market in Indonesia is segmented by type, which includes various methods of hydrogen production. Among these, solar hydrogen production is gaining traction due to the country's abundant sunlight, making it a viable option for sustainable energy generation. Wind hydrogen production is also emerging, particularly in regions with favorable wind conditions. Bioenergy hydrogen production is significant as it utilizes organic waste, aligning with Indonesia's waste management strategies. Hydropower and waste-to-energy methods are also being explored, contributing to the diversification of hydrogen sources.

Indonesia Hydrogen Generation Market segmentation by Type.

By End-User:The end-user segmentation of the hydrogen generation market in Indonesia includes residential, commercial, industrial, and government & utilities sectors. The industrial sector is the largest consumer of hydrogen, utilizing it for various applications such as refining and chemical production. The commercial sector is also growing, driven by the increasing adoption of hydrogen fuel cells in transportation and logistics. Government initiatives to promote clean energy are further enhancing the demand from utilities, while residential users are gradually adopting hydrogen solutions for energy needs.

Indonesia Hydrogen Generation Market segmentation by End-User.

Indonesia Hydrogen Generation Market Competitive Landscape

The Indonesia Hydrogen Generation Market is characterized by a dynamic mix of regional and international players. Leading participants such as PT Pertamina (Persero), Air Products and Chemicals, Inc., PT Pupuk Indonesia (Persero), PT PLN (Persero), Linde plc, Shell Indonesia, TotalEnergies, Mitsubishi Corporation, Hyundai Motor Company, Siemens AG, ENGIE, BP p.l.c., Toshiba Energy Systems & Solutions Corporation, JGC Corporation, PT Wijaya Karya (Persero) Tbk contribute to innovation, geographic expansion, and service delivery in this space.

PT Pertamina (Persero)

1957

Jakarta, Indonesia

Air Products and Chemicals, Inc.

1940

Allentown, Pennsylvania, USA

PT Pupuk Indonesia (Persero)

1959

Jakarta, Indonesia

PT PLN (Persero)

1945

Jakarta, Indonesia

Linde plc

1879

Guildford, United Kingdom

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Revenue Growth Rate

Market Penetration Rate

Customer Acquisition Cost

Customer Retention Rate

Pricing Strategy

Indonesia Hydrogen Generation Market Industry Analysis

Growth Drivers

  • Government Hydrogen Roadmap Consumption Targets:Indonesia's National Roadmap aims for hydrogen consumption between **125,594 and 245,462 tonnes** starting in future. This initiative integrates hydrogen into various sectors, including manufacturing, transportation, and power generation. The roadmap's ambitious targets reflect the government's commitment to establishing hydrogen as a key component of the national energy strategy, promoting sustainable energy solutions and reducing reliance on fossil fuels ((https://resourcehub.bakermckenzie.com/en/resources/hydrogen-heat-map/asia-pacific/indonesia/topics/hydrogen-developments?utm_source=openai)).
  • PLN Hydrogen Production Capacity:The state-owned electricity company, PLN, is set to produce **124,000 tonnes per annum (TPA)** of hydrogen, significantly exceeding the current domestic demand of **19,270 TPA**. With a national target of **198,408 TPA** by future, this production capacity indicates a robust foundation for scaling hydrogen generation, positioning Indonesia as a potential leader in the hydrogen economy ((https://hydrogenindustryleaders.com/indonesia-is-moving-towards-major-hydrogen-production-by-2025/?utm_source=openai)).
  • Renewable Energy Potential for Green Hydrogen:Indonesia boasts a renewable energy potential of **3,687 GW**, with **333 GW** of viable renewable electricity projects. This extensive renewable base supports the low-cost production of green hydrogen through electrolysis, making it feasible for Indonesia to transition towards sustainable energy solutions and meet both domestic and international hydrogen demands ((https://iesr.or.id/en/accelerating-green-hydrogen-deployment-through-a-comprehensive-national-hydrogen-roadmap/?utm_source=openai)).

Market Challenges

  • High Production Costs of Green Hydrogen:The current production cost of green hydrogen in Indonesia ranges from **Rp 3.8 to 12 per kilogram**, which is approximately four times higher than that of gray hydrogen. This significant cost disparity poses a major barrier to the competitiveness of green hydrogen, necessitating substantial reductions in production costs to enhance market viability and attract investment ((https://www.pwc.com/id/en/media-centre/infrastructure-news/april-2025/new-energy-indonesia-ready-to-welcome-hydrogen.html?utm_source=openai)).
  • Capital Intensity – High Cost of Capital:Indonesia faces a notably high weighted average cost of capital, which is among the highest globally. This elevated cost complicates financing for hydrogen plant development and infrastructure projects, thereby hindering the growth of the hydrogen sector and delaying the realization of export potential ((https://en.antaranews.com/news/332001/indonesia-projects-hydrogen-surplus-by-2060-plans-for-export?utm_source=openai)).

Indonesia Hydrogen Generation Market Future Outlook

The future of the Indonesia hydrogen generation market appears promising, driven by the potential for significant production surpluses and the establishment of large-scale hydrogen projects. With a projected capacity to produce **17.5 million tonnes per year** by future, Indonesia is well-positioned to meet both domestic and international hydrogen demands. Additionally, the integration of renewable energy sources is expected to lower production costs, enhancing the competitiveness of green hydrogen in the global market. The development of a robust hydrogen ecosystem will further support this growth trajectory.

Market Opportunities

  • Export Surplus Potential:Indonesia's hydrogen production potential of **17.5 million tonnes per year** significantly exceeds the domestic demand of **11.7 million tonnes per year**. This surplus positions Indonesia as a potential major exporter of clean hydrogen, tapping into global markets and contributing to the country's economic growth ((https://iesr.or.id/en/building-indonesias-green-hydrogen-production-and-market/?utm_source=openai)).
  • Industrial Sector Decarbonization:Currently, hydrogen is primarily consumed for urea (88%), ammonia (4%), and refining (2%). Future targets aim to allocate **3.9 million tonnes per year** to industrial applications by future. This presents immediate opportunities for decarbonization in established sectors, enhancing market readiness for hydrogen adoption ((https://www.pwc.com/id/en/media-centre/infrastructure-news/april-2025/new-energy-indonesia-ready-to-welcome-hydrogen.html?utm_source=openai)).

Scope of the Report

SegmentSub-Segments
By Type (e.g., Solar, Wind, Bioenergy, Hydropower, Waste-to-Energy)

Solar Hydrogen Production

Wind Hydrogen Production

Bioenergy Hydrogen Production

Hydropower Hydrogen Production

Waste-to-Energy Hydrogen Production

Others

By End-User (Residential, Commercial, Industrial, Government & Utilities)

Residential Users

Commercial Users

Industrial Users

Government & Utilities

Others

By Region (Java, Sumatra, Kalimantan, Sulawesi, Bali, Nusa Tenggara)

Java

Sumatra

Kalimantan

Sulawesi

Bali

Nusa Tenggara

By Technology (Electrolysis, Steam Methane Reforming, Biomass Gasification)

Electrolysis

Steam Methane Reforming

Biomass Gasification

Others

By Application (Fuel Cells, Industrial Processes, Transportation)

Fuel Cells

Industrial Processes

Transportation

Others

By Investment Source (Domestic, FDI, PPP, Government Schemes)

Domestic Investment

Foreign Direct Investment (FDI)

Public-Private Partnerships (PPP)

Government Schemes

Others

By Policy Support (Subsidies, Tax Exemptions, RECs)

Subsidies

Tax Exemptions

Renewable Energy Certificates (RECs)

Others

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Ministry of Energy and Mineral Resources, National Energy Council)

Manufacturers and Producers of Hydrogen Technologies

Energy Utilities and Power Generation Companies

Infrastructure Developers and Engineering Firms

Industry Associations (e.g., Indonesian Hydrogen Association)

Financial Institutions and Banks

Environmental NGOs and Sustainability Organizations

Players Mentioned in the Report:

PT Pertamina (Persero)

Air Products and Chemicals, Inc.

PT Pupuk Indonesia (Persero)

PT PLN (Persero)

Linde plc

Shell Indonesia

TotalEnergies

Mitsubishi Corporation

Hyundai Motor Company

Siemens AG

ENGIE

BP p.l.c.

Toshiba Energy Systems & Solutions Corporation

JGC Corporation

PT Wijaya Karya (Persero) Tbk

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Indonesia Hydrogen Generation Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Indonesia Hydrogen Generation Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Indonesia Hydrogen Generation Market Analysis

3.1 Growth Drivers

3.1.1 Increasing demand for clean energy solutions
3.1.2 Government initiatives promoting hydrogen technology
3.1.3 Rising investments in renewable energy infrastructure
3.1.4 Global shift towards decarbonization

3.2 Market Challenges

3.2.1 High initial investment costs
3.2.2 Limited infrastructure for hydrogen distribution
3.2.3 Regulatory uncertainties
3.2.4 Competition from alternative energy sources

3.3 Market Opportunities

3.3.1 Development of hydrogen fuel cell technology
3.3.2 Expansion of hydrogen production facilities
3.3.3 Collaboration with international partners
3.3.4 Growing interest in hydrogen as a transport fuel

3.4 Market Trends

3.4.1 Increasing adoption of green hydrogen
3.4.2 Technological advancements in electrolysis
3.4.3 Focus on hydrogen storage solutions
3.4.4 Integration of hydrogen in industrial processes

3.5 Government Regulation

3.5.1 National hydrogen strategy implementation
3.5.2 Incentives for renewable energy projects
3.5.3 Emission reduction targets
3.5.4 Safety regulations for hydrogen production and use

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Indonesia Hydrogen Generation Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Indonesia Hydrogen Generation Market Segmentation

8.1 By Type (e.g., Solar, Wind, Bioenergy, Hydropower, Waste-to-Energy)

8.1.1 Solar Hydrogen Production
8.1.2 Wind Hydrogen Production
8.1.3 Bioenergy Hydrogen Production
8.1.4 Hydropower Hydrogen Production
8.1.5 Waste-to-Energy Hydrogen Production
8.1.6 Others

8.2 By End-User (Residential, Commercial, Industrial, Government & Utilities)

8.2.1 Residential Users
8.2.2 Commercial Users
8.2.3 Industrial Users
8.2.4 Government & Utilities
8.2.5 Others

8.3 By Region (Java, Sumatra, Kalimantan, Sulawesi, Bali, Nusa Tenggara)

8.3.1 Java
8.3.2 Sumatra
8.3.3 Kalimantan
8.3.4 Sulawesi
8.3.5 Bali
8.3.6 Nusa Tenggara

8.4 By Technology (Electrolysis, Steam Methane Reforming, Biomass Gasification)

8.4.1 Electrolysis
8.4.2 Steam Methane Reforming
8.4.3 Biomass Gasification
8.4.4 Others

8.5 By Application (Fuel Cells, Industrial Processes, Transportation)

8.5.1 Fuel Cells
8.5.2 Industrial Processes
8.5.3 Transportation
8.5.4 Others

8.6 By Investment Source (Domestic, FDI, PPP, Government Schemes)

8.6.1 Domestic Investment
8.6.2 Foreign Direct Investment (FDI)
8.6.3 Public-Private Partnerships (PPP)
8.6.4 Government Schemes
8.6.5 Others

8.7 By Policy Support (Subsidies, Tax Exemptions, RECs)

8.7.1 Subsidies
8.7.2 Tax Exemptions
8.7.3 Renewable Energy Certificates (RECs)
8.7.4 Others

9. Indonesia Hydrogen Generation Market Competitive Analysis

9.1 Market Share of Key Players(Micro, Small, Medium, Large Enterprises)

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Revenue Growth Rate
9.2.4 Market Penetration Rate
9.2.5 Customer Acquisition Cost
9.2.6 Customer Retention Rate
9.2.7 Pricing Strategy
9.2.8 Operational Efficiency
9.2.9 Innovation Rate
9.2.10 Brand Recognition

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis(By Class and Payload)

9.5 Detailed Profile of Major Companies

9.5.1 PT Pertamina (Persero)
9.5.2 Air Products and Chemicals, Inc.
9.5.3 PT Pupuk Indonesia (Persero)
9.5.4 PT PLN (Persero)
9.5.5 Linde plc
9.5.6 Shell Indonesia
9.5.7 TotalEnergies
9.5.8 Mitsubishi Corporation
9.5.9 Hyundai Motor Company
9.5.10 Siemens AG
9.5.11 ENGIE
9.5.12 BP p.l.c.
9.5.13 Toshiba Energy Systems & Solutions Corporation
9.5.14 JGC Corporation
9.5.15 PT Wijaya Karya (Persero) Tbk

10. Indonesia Hydrogen Generation Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Energy and Mineral Resources
10.1.2 Ministry of Industry
10.1.3 Ministry of Environment and Forestry
10.1.4 Ministry of Transportation

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in Renewable Energy Projects
10.2.2 Budget Allocation for Hydrogen Initiatives
10.2.3 Corporate Partnerships for Infrastructure Development

10.3 Pain Point Analysis by End-User Category

10.3.1 Industrial Users' Challenges
10.3.2 Governmental Barriers
10.3.3 Commercial Sector Limitations
10.3.4 Residential User Concerns

10.4 User Readiness for Adoption

10.4.1 Awareness of Hydrogen Technologies
10.4.2 Willingness to Invest in Hydrogen Solutions
10.4.3 Training and Education Needs

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Evaluation of Initial Investments
10.5.2 Long-term Benefits of Hydrogen Adoption
10.5.3 Potential for Scaling Applications

11. Indonesia Hydrogen Generation Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Development


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail vs Rural NGO Tie-ups


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service


7. Value Proposition

7.1 Sustainability

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 JV, Greenfield, M&A, Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 JVs

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Milestone Planning

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of government publications and reports on hydrogen policies in Indonesia
  • Review of industry reports from energy and environmental organizations focusing on hydrogen generation
  • Examination of academic journals and white papers discussing technological advancements in hydrogen production

Primary Research

  • Interviews with key stakeholders in the energy sector, including government officials and policy makers
  • Surveys with executives from hydrogen production companies and renewable energy firms
  • Field interviews with researchers and engineers involved in hydrogen technology development

Validation & Triangulation

  • Cross-validation of data through multiple sources, including trade associations and market analysts
  • Triangulation of findings from desk research and primary interviews to ensure consistency
  • Sanity checks conducted through expert panel reviews comprising industry veterans

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of the hydrogen market size based on national energy consumption and renewable energy targets
  • Segmentation of the market by application areas such as transportation, industrial use, and power generation
  • Incorporation of government incentives and subsidies for hydrogen projects into market forecasts

Bottom-up Modeling

  • Collection of production capacity data from existing hydrogen plants and planned projects
  • Cost analysis of hydrogen production methods, including electrolysis and steam methane reforming
  • Volume and pricing analysis based on regional demand and supply dynamics

Forecasting & Scenario Analysis

  • Multi-factor regression analysis incorporating economic growth, energy transition policies, and technological advancements
  • Scenario modeling based on varying levels of government support and market adoption rates
  • Development of baseline, optimistic, and pessimistic forecasts through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Hydrogen Production Companies100CEOs, Operations Managers, R&D Directors
Government Energy Policy Makers50Policy Analysts, Energy Regulators, Environmental Officers
Renewable Energy Firms80Business Development Managers, Project Engineers
Academic Researchers in Hydrogen Technology40Professors, Research Scientists, Graduate Students
Industry Associations and NGOs30Executive Directors, Policy Advocates, Research Analysts

Frequently Asked Questions

What is the current value of the Indonesia Hydrogen Generation Market?

The Indonesia Hydrogen Generation Market is valued at approximately USD 2,145 million, driven by industrial decarbonization efforts and the growing demand for hydrogen as a clean energy alternative in heavy industries across Southeast Asia.

What are the key drivers of growth in the Indonesia Hydrogen Generation Market?

Who are the major players in the Indonesia Hydrogen Generation Market?

What is the National Hydrogen and Ammonia Roadmap announced by Indonesia?

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UAE Bioenergy MarketNorth America Hydropower Market

Japan Chemical Production Market

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