Bahlil expects hydrogen vehicles to rival EVs within next 10 years

Indonesia has initiated its first oil imports from Russia under a government plan to bring in 150 million barrels of crude oil, according to Energy and Mineral Resources Minister Bahlil Lahadalia. The move was confirmed during his remarks at the opening of the 2026 Global Hydrogen Ecosystem Summit & Exhibition in Jakarta. Lahadalia stated that the first stage of the import process had been executed via Lemigas, the state-owned agency tasked with managing energy imports. He emphasized the importance of maintaining sufficient domestic fuel supplies, noting that imports will continue as long as they align with regulatory frameworks, irrespective of their origin. The decision to import Russian oil follows directives from President Prabowo Subianto and is governed by Presidential Regulation No. 26 of 2026, which outlines procedures for procuring crude oil, fuel and liquefied petroleum gas to bolster national energy security. Under this regulation, public-service agencies in the energy sector can engage in international procurement either through bilateral agreements or direct supplier contracts. Article 4 of the regulation permits such imports under cooperation agreements, while Article 5 allows for emergency purchases by public-service agencies and Pertamina, the state oil company, even when pricing fluctuates based on factors such as volume, product type, origin and delivery time. These emergency measures require approval from the minister overseeing oil and gas affairs, currently Lahadalia. Indonesia continues to rely heavily on oil imports to meet its domestic energy demands. The nation consumes roughly 1.6 million barrels of fuel daily, with domestic crude oil production standing at approximately 600,000 to 615,000 barrels per day. This leaves the country dependent on imports of about 1 million barrels per day. However, recent efforts to reduce dependency have yielded progress. The mandatory implementation of the B50 biodiesel program, which mandates that diesel fuel contains 50 percent palm oil-based biodiesel, has contributed to a reduction in oil imports by around 250,000 to 300,000 barrels per day. As a result, current oil imports stand at approximately 700,000 to 750,000 barrels per day. President Subianto has announced plans to phase out diesel imports beginning in July 2026, citing the success of the B50 program as part of a broader strategy to enhance national energy independence. Indonesia is recognized as the first country globally to commercialize B50 diesel. Ending diesel imports is expected to redirect financial resources back into the domestic economy rather than paying for foreign fuel. In parallel, the government has introduced E10 gasoline, blending 10 percent ethanol, as a preliminary step towards wider bioethanol adoption. Plans are underway to increase the ethanol blend to E20 and expedite the construction of additional bioethanol plants, as the country currently operates only one such facility. Looking ahead, Minister Lahadalia has expressed confidence that hydrogen-powered vehicles may challenge battery-electric vehicles (EVs) in the global clean transportation market within the next decade. Speaking at the GHES 2026 summit, he highlighted Indonesia’s commitment to leveraging its 100-gigawatt solar power initiative to generate zero-emission hydrogen fuel. By using renewable solar energy, the produced hydrogen will remain entirely green throughout its lifecycle. Lahadalia noted that the global debate between hydrogen and battery technologies is intensifying, with Japan leading in hydrogen development and China dominating battery technology. His ministry’s approach is anchored in three core principles: promoting clean energy, ensuring high efficiency and prioritizing domestic production. Hydrogen is positioned as a vital component in strengthening Indonesia’s energy security and achieving greater self-reliance in energy sourcing.