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Ministry of Industry Encourages Hydrogen Industry to Support Decarbonization
Jakarta, INTI - In an effort to reduce dependency on fossil fuels and lower Greenhouse Gas (GHG) emissions, the Ministry of Industry is focusing on the development of hydrogen as a promising alternative energy source in Indonesia. This initiative aligns with Indonesia's commitment to achieving Net Zero Emissions (NZE) by 2060. Hydrogen, known for its environmental friendliness, is expected to become a key commodity supporting decarbonization across various industrial sectors.
During a Focus Group Discussion (FGD) organized by the Directorate General of Chemical, Pharmaceutical, and Textile Industries on Thursday (August 15), the Acting Director General, Reni Yanita, stated that hydrogen development should not be limited to the fertilizer and petrochemical sectors but should also be expanded into other areas such as transportation, power generation, and energy storage.
However, Reni acknowledged that low-carbon hydrogen production technology is still in its early stages and faces high costs. Therefore, collaboration between the government, industry, and other sectors is needed to overcome these challenges and maximize the potential of hydrogen as an alternative energy source. Reni added that for now, low-carbon hydrogen will remain classified under KBLI 20112 – Basic Inorganic Chemical Industry of Industrial Gas, in accordance with Government Regulation No. 5 of 2021 on Risk-Based Business Licensing.
The FGD was also attended by representatives from various ministries, agencies, and industry associations involved in the development of renewable energy in Indonesia. The discussions focused on strategies to accelerate the development of the hydrogen industry, including regulatory simplifications to support investment and ensure that businesses can fully leverage the significant potential of hydrogen.
In the long term, it is hoped that the development of the hydrogen industry will create a new energy market in Indonesia, while also serving as an effective alternative solution to the global energy crisis. Additionally, hydrogen development is expected to support climate change mitigation efforts and build a more sustainable industrial ecosystem in Indonesia.
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