PT Pertamina Geothermal Energy (PGE), a publicly listed subsidiary of state-owned Pertamina, has commenced construction of a green hydrogen project in Ulubelu, Lampung. With an investment of US$3 million, the pilot facility is designed to produce up to 100 kilograms of green hydrogen per day, operating at an efficiency rate of 82 to 88 percent. The project is expected to begin operations in 2025. Notably, the facility will be the first to integrate Anion Exchange Membrane (AEM) electrolyzer technology with geothermal energy as a clean power source.
As a carbon-free fuel in both production and use, green hydrogen is regarded as a key solution for decarbonizing industries that are challenging to electrify, such as steel, cement, and transportation. PGE President Director Julfi Hadi emphasized that the project represents an important milestone in placing Indonesia within the global clean energy supply chain. He noted that Ulubelu could serve as a replicable innovation hub for other geothermal areas and outlined PGE’s broader strategy of utilizing green hydrogen as feedstock for derivatives such as green ammonia and methanol. These products are projected to become vital fuels and raw materials for future low-carbon industries. Pertamina Corporate Communications Vice President Fadjar Djoko Santoso further highlighted that the initiative contributes directly to Indonesia’s 2060 net-zero emissions target.
The Indonesian government views hydrogen as central to its decarbonization agenda. As Southeast Asia’s largest economy, the country seeks to reduce reliance on fossil fuels, strengthen energy security, and establish itself as a hydrogen export hub. Hydrogen functions as an energy carrier, storing and transporting energy from other sources, and can be used in fuel cells to generate electricity and heat. These attributes make it a promising option for low-carbon energy solutions. According to Goldman Sachs, the green hydrogen market could eventually reach a global value of US$12 trillion, attracting significant investment. Similarly, the International Energy Agency (IEA) projects that hydrogen development will create substantial employment opportunities while enhancing energy resilience.
In the domestic context, green hydrogen has the potential to replace natural gas and coal, while also serving as a future export commodity. To accelerate its adoption, Indonesia released the National Hydrogen Strategy (SHN) in December 2023, outlining policies to promote hydrogen production and consumption. In April 2024, the government followed with the National Hydrogen and Ammonia Roadmap (RHAN), which sets out detailed plans and action steps for scaling hydrogen and ammonia development nationwide.
However, challenges remain, particularly regarding production costs. Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR), observed that green hydrogen currently costs between US$6 and US$10 per kilogram, three to four times higher than hydrogen derived from natural gas. The elevated costs stem from expensive electrolyzer technology, renewable electricity prices, and the limited scale of renewable energy infrastructure. Despite these constraints, Fabby expressed optimism that the sector will become more viable as renewable energy capacity expands, lowering production costs over time.
In sum, PGE’s green hydrogen pilot project represents both a technological breakthrough and a strategic step in Indonesia’s energy transition. By leveraging geothermal resources and advanced electrolysis, the initiative underscores the nation’s ambition to decarbonize its economy, strengthen energy security, and capture opportunities in the emerging global hydrogen market.
September 10, 2025, The Jakarta Post
(https://www.thejakartapost.com/business/2025/09/10/pertamina-breaks-ground-on-3m-green-hydrogen-project.html)