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The Ministry of Energy and Mineral Resources (ESDM) is accelerating the development of hydrogen as a key component in Indonesia’s clean energy transition. In line with the country’s national hydrogen strategy, the ministry aims to position hydrogen as a crucial player in supporting renewable energy development, achieving decarbonization goals, and boosting Indonesia’s potential as a global exporter of hydrogen.
Eniya Listiani Dewi, Director General of New, Renewable Energy, and Energy Conservation (EBTKE), outlined the Ministry’s projections for hydrogen demand to reach 9.9 million tons per year (Mtpa) by 2060. The demand will come from various sectors, including industry, transportation, electricity, and household gas networks. Hydrogen will play a strategic role in Indonesia’s efforts to achieve its Net Zero Emissions (NZE) target by 2060, or sooner.
“Hydrogen is a vital component in reducing carbon emissions, and establishing a specific KBLI (Standard Classification of Business Fields) for hydrogen will encourage innovation, investment, and collaboration across sectors,” said Eniya during a public consultation on the matter. She emphasized that ensuring the economic viability and sustainability of hydrogen, particularly green hydrogen, is critical to Indonesia’s energy transition.
In partnership with the UK MENTARI program, the Ministry has been working on a study to finalize the KBLI for hydrogen, which will be submitted to Indonesia’s Central Statistics Agency (BPS). This classification is intended to provide regulatory clarity and legal certainty for industry players, enabling smoother investment and development in the hydrogen sector.
Eniya also stressed the broader benefits of hydrogen development. “Hydrogen not only helps reduce CO2 emissions but also strengthens Indonesia’s position in the global renewable energy market. The green hydrogen economy is projected to grow significantly, potentially reaching USD 11 trillion globally by 2050, and USD 70 billion by 2060.”
According to a study by the International Renewable Energy Agency (IRENA), hydrogen has the potential to cut Indonesia’s carbon emissions by up to 11.6 million tons of CO2 annually. The sector is also expected to create 5.3 million new jobs by 2050 as the hydrogen supply chain expands from production to application.
The hydrogen KBLI proposal, which began in October 2023, is coordinated by the Directorate General of EBTKE, and aims to address security, licensing, and regulatory aspects of the hydrogen supply chain. This initiative is expected to be included in the 2025 KBLI book.
The Ministry is confident that developing a national hydrogen ecosystem will not only help achieve Indonesia’s renewable energy targets but also secure its role in the global energy transition. |
