Development of Hydrogen as an Alternative Energy Solution in Indonesia

Jakarta, INTI - In response to the energy crisis affecting various countries, the Ministry of Industry is actively promoting the development of alternative, carbon-free energy sources. One promising solution is hydrogen, which not only has the potential to replace domestic fossil fuel supplies but also supports Indonesia's commitment to reducing Greenhouse Gas (GHG) emissions by 2030 and achieving Net Zero Emissions (NZE) by 2060.

Hydrogen, as an environmentally friendly and versatile energy carrier, offers wide-ranging applications. It can be utilized in various sectors, including transportation, power generation, heating systems, energy storage, and as an industrial raw material. However, the current use of hydrogen in Indonesia is still predominantly in the fertilizer, petrochemical, and refinery industries, with most of the hydrogen sourced from natural gas.

The Acting Director General of Chemical, Pharmaceutical, and Textile Industries, Reni Yanita, highlighted during a Focus Group Discussion (FGD) on Hydrogen Development as a Commodity in Jakarta on Thursday (August 15), that hydrogen development in Indonesia could be key to harnessing renewable energy and mitigating climate change. However, Reni also pointed out that low-carbon hydrogen production technology is still relatively new and costly. Therefore, strategic actions from the government are necessary to support the development of the hydrogen industry, particularly by maximizing Indonesia's renewable natural resources.

The government, through the Ministry of Industry, is encouraging the industry to develop low-carbon hydrogen production that utilizes renewable energy and raw materials. To support investment and ease business operations, low-carbon hydrogen will remain classified under KBLI 20112 – Basic Inorganic Chemical Industry of Industrial Gas, as mandated by Government Regulation No. 5 of 2021 on Risk-Based Business Licensing.

With supportive regulations in place, it is hoped that the development of hydrogen commodities in Indonesia will progress smoothly. This will not only aid in decarbonization but also create a conducive business climate and accelerate the establishment of a national hydrogen industry ecosystem. This development is also seen as a relevant alternative solution in the current and future energy crisis scenarios.