Indonesia's Ambitious Hydrogen Strategy: From Commitment to Challenges
Key Ideas
  • Indonesia aims for net zero emissions by 2060, with a focus on hydrogen utilization for decarbonization in energy systems and national strategy implementation.
  • The country plans to leverage its renewable energy potential for green hydrogen production, with transportation and industry sectors targeted for hydrogen use by 2031 and 2041 respectively.
  • Challenges include high production costs, undeveloped market, insufficient infrastructure, and funding uncertainties, with proposed solutions including policy support and private sector investment.
  • Learning from other countries, Indonesia can optimize renewable energy investment, explore nuclear energy for hydrogen production, and adopt strategies from diverse national approaches to hydrogen utilization.
In 2021, Indonesia increased its commitment towards achieving net zero emissions by 2060, surpassing its enhanced national determined contribution goals. The country aims to reduce emissions by 951 MT CO2eq by 2030, with the energy sector expected to contribute 12% to this target. The emergence of low carbon technologies like CCUS and hydrogen plays a pivotal role in Indonesia's decarbonization journey. The national hydrogen strategy, released in 2023, focuses on energy source diversification, domestic demand expansion, and creating an export market for hydrogen. Indonesia's rich renewable energy potential, including bioenergy and solar, presents a significant opportunity for green hydrogen production. The country plans to introduce green hydrogen in transportation by 2031 and in industries by 2041, alongside emphasizing the development of domestic supply chains. Despite these initiatives, Indonesia faces challenges such as high production costs, market uncertainties, and infrastructure gaps. To address these issues, Indonesia requires supportive policies, private sector investments, and enhanced infrastructure development. Learning from global strategies, Indonesia can optimize renewable energy investments, consider nuclear energy for hydrogen production, and adopt best practices from other nations' hydrogen utilization approaches.
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