Indonesia's Green Hydrogen Industry: Incentives and Growth Strategies
Key Ideas
  • The Indonesian Ministry is drafting regulations to provide incentives and tax relief to green hydrogen developers to accelerate the growth of the country's green hydrogen industry.
  • The target for hydrogen production in Indonesia is 9.9 Mtpa by 2060, with the aim to meet demands in sectors like industry, transportation, electricity, and household gas networks, potentially becoming export commodities.
  • Industry experts emphasize the importance of price subsidies, funding, and regulations on hydrogen exports, production, transportation standards, and power wheeling schemes to support a sustainable and low-carbon hydrogen ecosystem.
  • Indonesia, with significant gas reserves and renewable energy potential, is strategically positioned to cater to the high clean hydrogen demand in countries like Japan, South Korea, and Singapore, creating opportunities for economic growth.
The Indonesian Ministry of Energy and Mineral Resources is actively working on drafting regulations to offer incentives and tax relief to green hydrogen developers in a bid to boost the growth of the green hydrogen industry in the country. The Draft Law on New and Renewable Energy is being reviewed, with measures to accelerate the industry's growth included. The government is also assessing a national hydrogen strategy to reduce fossil fuel usage. Targets have been set for hydrogen production, aiming to cater to demands in various sectors and potentially become export commodities. Industry experts stress the need for price subsidies, funding, and comprehensive regulations to support a sustainable and low-carbon hydrogen ecosystem. Indonesia's strategic position geographically and its abundant gas reserves and renewable energy potential present opportunities for leveraging these resources to foster economic growth. The country's proximity to countries with high clean hydrogen demand offers a promising market for the green hydrogen industry.
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