Home Blog Fueling the IKN’s Future with Hydrogen Cars Development Business Setup | Import License | Indonesia Fueling the IKN’s Future with Hydrogen Cars Development InCorp Editorial Team 26 July 2024 7 minute reading time Table of Contents What are Hydrogen Cars? Indonesia Plans to Power All Hydrogen Cars in IKN with Hydrogen Fuel Cells Is Hydrogen Better than Electric Cars? Hydrogen Cars vs. Electric Cars Pros and Cons of Hydrogen-Powered and Electric-Powered Cars The Future of Hydrogen Cars and Indonesia's Projection as a Global EV Hub Electric Vehicle Market Situation InCorp Can Help You Enter Eco-Vehicle Market Indonesia is boldly moving towards sustainable transportation. As we all know, the EV market keeps growing, and recently, Indonesia’s government announced a mandate for hydrogen cars. Hydrogen cars are powered by hydrogen fuel cells. Therefore, to keep the capital green, all Nusantara (IKN) vehicles will slowly develop only for hydrogen cars by 2040. This ambitious plan shifts from the initial focus on battery-electric vehicles (EVs). What are Hydrogen Cars? Hydrogen cars, also known as fuel cell vehicles, are a type of electric vehicle that uses hydrogen gas to generate electricity. The energy conversion process occurs in the fuel cell, where hydrogen from the vehicle’s tank reacts with oxygen from the air to produce electricity, which then powers the car’s electric motor. Unlike traditional battery electric vehicles, hydrogen cars do not need to be plugged in to charge. Instead, they refuel with hydrogen gas, which can be done relatively quickly, offering a similar experience to refueling a traditional gasoline vehicle. Here’s a simple note of how hydrogen vehicles work: Electric Engine Hydrogen cars generate electricity using a fuel cell, which then powers an electric motor to move the vehicle. They use hydrogen gas as fuel and produce electricity through a chemical reaction with oxygen from the air. Fuel Cell The key difference is how they generate electricity. Instead of a large battery pack, hydrogen cars use a fuel cell stack. This stack combines hydrogen from the car’s tank with oxygen from the air through an electrochemical reaction, producing electricity, water vapor, and heat. Hydrogen Tank The hydrogen gas is stored in a high-pressure tank onboard the hydrogen cars. This storage method allows for a higher density of hydrogen, making it an efficient way to store the fuel for use in the vehicle’s fuel cell. Indonesia Plans to Power All Hydrogen Cars in IKN with Hydrogen Fuel Cells The government plans to mandate hydrogen-based vehicles in the future capital city of Nusantara (IKN). This mandate signals a shift from the initial emphasis on battery-powered electric vehicles (EVs) in the upcoming new capital in East Kalimantan. The objective is to enforce this mandate post-2040, with an interim goal of having 50 percent of vehicles running on hydrogen by 2035. Is Hydrogen Better than Electric Cars? Hydrogen, mainly green hydrogen, is produced through water electrolysis using renewable energy. It is considered a viable fuel candidate for vehicles because its only emission is water, unlike fossil fuel combustion, which releases toxins and greenhouse gasses. Hydrogen cars can generate electricity through fuel cells, making it a promising technology for meeting diverse electrical and thermal energy requirements. This includes motor vehicles, where hydrogen-fueled vehicles take only 3-5 minutes to refuel completely. The energy recovery process is significantly faster than recharging electric vehicle batteries, which can take 20 minutes to 1 hour for DC fast charging or 4-10 hours for home charging. READ MORE:The Investment Opportunity For An Electric Vehicle Ecosystem In IndonesiaIndonesia-Japan Relations To Drive Electric Vehicle MarketHow To Open An Electric Vehicle Charging Station In Indonesia Hydrogen Cars vs. Electric Cars Indonesia has a comparative advantage in producing hydrogen based on natural gas and/or coal gasification. The reserves within Indonesia are analyzed to be more efficient in production than those of the European Union, Japan, South Korea, and fellow ASEAN member countries. However, hydrogen cars, known as fuel cell electric vehicles (FCEVs) or fuel cells & hydrogen (H2FC/FCH), may be superior to all-electric vehicles (EVs). Refer to the table below from Kompas and research by Kim et al. (2021) in Europe, published in Energies, 2021, 14, 4384. Two other factors contribute to the high price of hydrogen vehicles. First, these vehicles require “super-special” fuel tanks capable of safely storing high-pressure compressed hydrogen gas or cryogenic tanks if the hydrogen fuel is liquid. Second, the materials used in the fuel cell stack, particularly platinum, are relatively expensive. Pros and Cons of Hydrogen-Powered and Electric-Powered Cars Despite many studies suggesting that electric and hydrogen cars are environmentally friendly, evaluating their advantages and disadvantages is crucial to determining which car to purchase. Here are the key pros and cons of hydrogen and EVs. Hydrogen Cars ProsConsQuick Refueling: Hydrogen cars benefit from an efficient and fast refueling process, allowing them to be refueled in just a few minutes.Limited Infrastructure: The scarcity of hydrogen refueling stations makes these cars less practical for widespread use.Long Range: These vehicles offer a longer range on a single fuel tank, allowing longer trips without frequent refueling stops.High Cost: Hydrogen vehicles are expensive, and the cost of refueling can vary significantly across different countries.Zero Emissions: Hydrogen cars emit only water vapor, making them zero-emission vehicles.Production Challenges: Producing hydrogen is energy-intensive and often relies on non-renewable energy sources. Electric Cars ProsConsDeveloped Infrastructure: Electric cars benefit from a more advanced charging station network, with significant investment from governments worldwide.Limited Range: A significant drawback is their limited range compared to the lengthy time needed to recharge the batteries.Emission-Free and Cost-Effective: Electric cars operate silently without producing emissions. They are also generally more affordable, with lower recharging costs.Battery Lifespan: Electric car batteries have a finite lifespan and can be challenging to dispose of properly. Regular replacement is necessary.Low Maintenance: With fewer moving parts, electric vehicles are reliable and require less maintenance, reducing overall costs.Developing Charging Network: While expanding, the charging station network is still developing, with around 1,000 stations currently available. The Future of Hydrogen Cars and Indonesia’s Projection as a Global EV Hub Indonesia aims to become a global hub for electric vehicles (EVs). Recently, Indonesia announced plans for all vehicles in IKN to be powered by hydrogen cars and fuel cells by 2040. This shift towards hydrogen technology suggests a future where both battery EVs and hydrogen cars could play significant roles. Indonesia’s abundant resources give it a strong position in the EV race. The country has vast nickel reserves, a key component in lithium-ion batteries used by most EVs today. Indonesia’s production of critical minerals like aluminum, copper, and tin further strengthens its position in the EV ecosystem. This resource advantage is expected to have a significant economic impact in the coming years. Electric Vehicle Market Situation Analysts predict a growing EV market in Indonesia, with projections of having 2 million electric passenger cars and a staggering 13 million electric motorcycles on the roads by 2030. According to AC Ventures, the total market value for EVs in Indonesia is expected to reach USD 20 billion by 2030, with a compound annual growth rate (CAGR) of 58.5%. However, with the focus on hydrogen cars for IKN, Indonesia is looking beyond just battery EVs. This dual approach positions Indonesia as a leader in exploring the future of clean transportation technologies, potentially becoming a global hub for established and emerging EV solutions. Guide to Doing Business in Jakarta Mailchimp Free eBook Indonesia Business Insight Full NameEmail I have read InCorp's Privacy Policy and agree to InCorp using my information provided to contact me about related content, and services.*Subscribe InCorp Can Help You Enter Eco-Vehicle Market Indonesia is on the right path to establishing an eco-friendly vehicle ecosystem by adopting electric vehicles (EVs) and hydrogen vehicles. This burgeoning market presents substantial opportunities for businesses looking to enter the industry. InCorp Indonesia can be your trusted partner in navigating this dynamic landscape and streamlining your entry into the Indonesian eco-vehicle market: Company Registration: We’ll guide you through the entire company registration process, ensuring your business is established efficiently and compliantly. Import License and Importer of Record: Whether you choose to import vehicles directly or leverage an Importer of Record (IoR) service, InCorp can assist you in getting the necessary licenses and permits. Fill out the form below and take advantage of the exciting opportunities in Indonesia’s eco-friendly vehicle industry. Read Full Bio Pandu Biasramadhan Senior Consulting Manager at InCorp Indonesia An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.