The Indonesian government plans to mandate all vehicles in Nusantara (IKN) to be hydrogen-based, shifting from an initial focus on battery-based electric vehicles (EVs). The target is to implement the mandate after 2040, with an interim goal of 50% of vehicles to be hydrogen-based by 2035.
President Joko Widodo had previously stated that all passenger vehicles in IKN must be battery-based EVs. Hydrogen-based EVs are expected to primarily serve commercial purposes, such as trucks and buses.
Transitioning buses and heavy transport to hydrogen will require significant power outputs, equivalent to substantial amounts of hydrogen by 2040. The government is working on revising regulations to support hydrogen development, including tax incentives and business permits.
Currently, hydrogen-powered EVs are mainly produced by Japanese and South Korean companies, with Hyundai and Toyota leading the market. Indonesia is also working to increase the production and use of biofuel, especially that mixed with diesel fuel and fatty acid methyl ester (FAME) from crude palm oil.