Indonesia's Push for Green Hydrogen: Policy, Incentives, and Potential
Key Ideas
  • The Indonesian Ministry of Energy and Mineral Resources is developing regulations to incentivize and support the growth of green hydrogen production in the country.
  • The planned regulations include tax breaks, standards for tax holidays, allowances, and carbon trading aimed at reducing reliance on fossil fuels.
  • Indonesia aims to produce 9.9 million tons of hydrogen per year by 2060, catering to industrial, transportation, electricity, and household sectors, with potential for export.
  • The government's focus on green hydrogen aligns with its abundant energy resources such as geothermal potential and solar power capacity, offering opportunities for sustainable industry and economic growth.
The Indonesian Ministry of Energy and Mineral Resources is working on regulations and incentives to boost the development of green hydrogen in the country. These efforts are part of a broader strategy to reduce dependence on fossil fuels and promote a more sustainable energy ecosystem. The upcoming policy will include provisions for tax breaks, tax holidays, allowances, and carbon trading standards to support hydrogen production. Indonesia aims to produce 9.9 million tons of hydrogen annually by 2060, with plans to cater to various sectors including industry, transportation, electricity, and household gas, while also exploring opportunities for hydrogen export. Industry leaders at the Indonesia International Hydrogen Summit 2024 expressed the need for clear guidelines, price subsidies, and funding support to drive the hydrogen sector's growth. The focus is not only on meeting domestic demands but also on positioning Indonesia as a key player in the global hydrogen market. With abundant geothermal potential and significant solar power capacity, Indonesia sees green hydrogen as a pathway to sustainable industry and economic development. The push for green hydrogen is viewed positively as a step towards creating a more environmentally friendly future and reducing carbon emissions. The government's efforts to support the hydrogen industry are seen as instrumental in attracting foreign investment and fostering a low-carbon hydrogen ecosystem. With proximity to high-demand markets like Japan, South Korea, and Singapore, Indonesia aims to capitalize on its energy resources to drive economic growth through the hydrogen sector.
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