The Indonesian government is positioning Japan as a strategic partner in developing a green hydrogen ecosystem, particularly as a future offtaker, in regards with Japan’s pioneering status in advancing the use of green hydrogen and ammonia to support the global energy transition.
Eniya Listiani Dewi, Director General of New and Renewable Energy and Energy Conservation at the Energy and Mineral Resources Ministry, said collaboration between Indonesia and Japan is essential for building the country’s hydrogen value chain, from production to market access.
“In East Asia, Japan and Korea are the most vocal about opening hydrogen business opportunities. Japan is among the most aggressive in securing hydrogen supplies from other countries,” Eniya said as quoted by Katadata.co.id on Tuesday, February 3, 2026.
Japan has long imported gas from Indonesia, and the existing shipping infrastructure could eventually be repurposed to transport carbon-free hydrogen.
According to Eniya, Japan has the potential to become the largest offtaker of Indonesia’s green hydrogen and ammonia. However, current cooperation remains focused on ecosystem development and strengthening domestic production capacity.
“We have not yet reached the government-to-government memorandum stage. Right now, the focus is on building the ecosystem first − how we can produce hydrogen ourselves using renewable energy rather than importing raw materials,” she said.
The government has prepared a National Hydrogen Roadmap as the foundation for developing the green hydrogen ecosystem, though implementation still requires stronger regulatory backing, ranging from ministerial to government-level regulations.
The Energy Ministry is currently finalizing a ministerial decree on hybrid system pricing, including combinations of solar panels, batteries, and hydrogen for electricity generation. The scheme is expected to serve as the backbone of the diesel replacement program, particularly for power plants with capacities below 10 megawatts (MW).
“If hydrogen is developed in remote areas to replace diesel, the electricity can be sold to PLN as long as the price is lower than local diesel costs. This is a major opportunity for the industry to move faster,” Eniya said.
For projects exceeding 10 MW, the government is also considering revising Presidential Regulation No. 112/2022 to provide greater room for hydrogen- and ammonia-based clean energy initiatives.
Indonesia is also eyeing export opportunities, particularly to Japan and South Korea, both of which are actively seeking dependable green hydrogen supplies. The partnership with Japan is expected to result in tangible projects beyond feasibility studies and pilot phases.
“Many projects are already in the pipeline, such as those in Sumba, Aceh, and Gresik. The remaining challenges are regulatory certainty and pricing so they can reach financial close,” she said.
The government aims to gradually shift incentives from fossil fuels toward renewable energy, similar to the strong support previously extended to electric vehicles. Hydrogen and ammonia are projected to become new industries that enhance national economic competitiveness while helping meet emission reduction targets.
“We have a long history with hydrogen and vast resource potential. What is needed now is accelerated business-to-business and government-to-government synergy so that this ecosystem can truly be established,” Eniya said.
