Indonesia hydrogen and electrification push

In late July 2026, Indonesia announced a suite of policy and financing measures aimed at diversifying its energy mix. A new regulation formalised a 10 percent Participating Interest scheme that lets regional governments hold stakes in upstream oil‑gas contracts, while the government highlighted hydrogen as a strategic pillar for the energy transition. State‑owned PLN outlined a biohydrogen supply chain leveraging the country’s large biomass base, and Pertamina secured a US$75 million non‑cash loan to develop geothermal projects, all within a broader plan to add 100 GW of capacity and mobilise over Rp1 trillion in investments.

Two days later, the focus shifted to implementation progress. The Energy Minister reported that 1,400 of the remaining 11,000 unelectrified villages had been connected under the 2025 Village Electricity Program, with a presidential inauguration slated for mid‑August and a target of universal village electrification by 2029. At the Global Hydrogen Ecosystem Summit in Jakarta, PLN reaffirmed its commitment to building a national hydrogen ecosystem, underscoring the need for technology, market development, investment and regulatory support to accelerate the sector.

Together, the snapshots show Indonesia moving from policy formulation and financing commitments toward concrete rollout of rural electrification and deeper promotion of a national hydrogen strategy.