Indonesia's Push for Green Hydrogen Development: Incentives, Tax Breaks, and Export Opportunities
Key Ideas
  • The Indonesian Ministry of Energy and Mineral Resources is working on regulations to provide incentives and tax breaks to boost green hydrogen development, aiming to reduce fossil fuel usage.
  • Hydrogen production targets for 2060 stand at 9.9 million tons per year, catering to industrial, transportation, electricity, household gas, and potential export sectors.
  • Key stakeholders like Pertamina Geothermal Energy and Medco Power Indonesia emphasize the importance of incentives, tax breaks, pricing subsidies, and funding to drive sustainable industry growth.
  • Government officials and industry experts believe investing in hydrogen technology will lead to a more environmentally friendly future and attract foreign investment, utilizing Indonesia's abundant energy resources for economic growth.
The Indonesian Ministry of Energy and Mineral Resources is actively preparing regulations to provide incentives and tax breaks for developers involved in green hydrogen projects. This initiative is part of the government's strategy to shift away from fossil fuel dependency. The Ministry aims to include these policies in the upcoming EBET Bill, currently under evaluation. The focus is not only on providing incentives but also on developing a national hydrogen strategy to cut down on fossil fuel usage. The regulations will cover aspects like tax holidays, allowances, carbon trading, and production standards. The hydrogen production target set for 2060 is 9.9 million tons per year, with specific allocations for various sectors such as industry, transportation, electricity, and households. Additionally, Indonesia sees potential in hydrogen becoming an export commodity. Stakeholders like Pertamina Geothermal Energy and Medco Power Indonesia stress the need for comprehensive guidelines, including export regulations, production standards, and electricity distribution schemes. Industry experts believe that investing in hydrogen technology can pave the way for a more sustainable future by reducing reliance on fossil fuels. Furthermore, officials from the Coordinating Ministry for Maritime and Investment Affairs highlight Indonesia's strategic position in close proximity to countries with high clean hydrogen demand. Leveraging its vast energy resources, including significant geothermal and solar power potential, Indonesia aims to harness these resources for economic growth through the hydrogen sector's development.
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