Indonesia pushes hydrogen ecosystem and 10% oil‑gas participation reforms
Senior economist Dahlan Tampubolon explained that the Participating Interest (PI) 10 percent scheme in Indonesia's upstream oil‑gas sector is an ownership right for regional governments, not a direct cash grant. The latest regulation, Permen ESDM No. 1/2025, confirms the PI allows regional BUMD to hold up to 10 percent of contracts and assigns a moral duty to facilitate permits and reduce transaction costs.
Investment minister Bahlil Lahadalia highlighted hydrogen as a strategic pillar for the country's energy transition, urging an integrated hydrogen ecosystem that creates value, attracts investors, and requires supportive technology, markets, financing, and regulation. PLN Energi Primer Indonesia (PLN EPI) is developing a biohydrogen supply chain using Indonesia's estimated 80 million tonnes of annual biomass, targeting high‑demand sectors such as fertilizer, petrochemicals, steel, and sustainable aviation fuel.
PT Pertamina Geothermal Energy secured a non‑cash loan facility of up to US$75 million (about Rp1.35 trillion) from Bank Mizuho Indonesia to fund geothermal project development. The government’s broader energy plan aims to add 100 GW of capacity and calls for roughly Rp1,140 trillion in investment, emphasizing renewable sources, hydrogen, biohydrogen, and geothermal to meet net‑zero targets.
Entities: Bahlil Lahadalia · Bank Mizuho Indonesia · Dahlan Tampubolon · Ministry of Energy and Mineral Resources (ESDM) · Oil and Gas Contractors (KKKS) · PLN Energi Primer Indonesia (PLN EPI) · PT Pertamina Geothermal Energy (PGEO) · Regional Government (Pemda) · State-owned Enterprises (BUMD)
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 2 SOURCES] PI scheme allows regional BUMD to own up to 10 percent of upstream oil‑gas contracts. (Dahlan Tampubolon)
- [○ 1 SOURCE] Indonesia’s energy transition plan targets adding 100 GW of capacity and requires approximately Rp1,140 trillion in investment. (Kementerian ESDM)
- [● 3 SOURCES] Indonesia’s energy policy emphasizes renewable sources, hydrogen, biohydrogen, and geothermal technologies to achieve net‑zero emissions. (Various ministry statements)
- [○ 1 SOURCE] PT Pertamina Geothermal Energy secured a non‑cash loan facility up to US$75 million (≈Rp1.35 trillion) from Bank Mizuho Indonesia for geothermal project development. (PGEO management)
- [○ 1 SOURCE] Minister Bahlil Lahadalia said hydrogen is strategic for Indonesia’s energy transition and aims to build an integrated hydrogen ecosystem to attract investment. (Bahlil Lahadalia)
- [● 2 SOURCES] Permen ESDM No. 1/2025 defines the PI scheme and gives regional governments a moral responsibility to facilitate permits. (Dahlan Tampubolon)
- [● 2 SOURCES] Participating Interest (PI) 10 percent is a right of ownership for regional governments, not a direct cash grant. (Dahlan Tampubolon)
- [● 2 SOURCES] PLN EPI plans to develop biohydrogen from Indonesia’s 80 million tonnes of annual biomass, targeting sectors such as fertilizer, petrochemicals, steel, and sustainable aviation fuel. (Hokkop Situngkir / Anita Puspita Sari)