Driving Indonesia's Green Future: The Potential of Green Hydrogen
Key Ideas
  • Green hydrogen can help Indonesia achieve its NZE target by 2060 by being utilized in various sectors like electricity, industry, and transportation.
  • Despite cost challenges, factors like advancing production technology, increasing global investments, and economic benefits are making green hydrogen more competitive.
  • The development of a green hydrogen ecosystem in Indonesia is crucial to drive economic growth, low emissions, and meet renewable energy potential.
  • To accelerate the green hydrogen ecosystem, initiatives like formulating a national hydrogen strategy and fostering domestic and international collaboration are essential.
Utilizing green hydrogen is seen as a key strategy for Indonesia to achieve its net zero emission (NZE) target by 2060 or even earlier. The Institute for Essential Services Reform (IESR) advocates for the increased production and market creation of green hydrogen to support the country's decarbonization goals. While the current cost of green hydrogen production poses a challenge, factors such as maturing production technology, rising global investments, and the economic benefits it brings are expected to enhance its competitiveness. The potential for Indonesia's renewable energy projects to produce green hydrogen is significant, especially considering the country's vast renewable energy potential. Initiatives like the Green Hydrogen Community of Indonesia (KH2I) aim to support the development of green hydrogen by building a network of experts, strengthening policies, and fostering stakeholder engagement. The government's role in setting targets for green hydrogen development, reducing production costs, and providing policy support is crucial. By formulating a national hydrogen strategy, prioritizing policy competitiveness, and fostering domestic and international collaborations, Indonesia aims to accelerate the adoption of green hydrogen and drive its low-carbon energy transition.
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