Minister Of Energy And Mineral Resources Talks About Indonesia's Green Hydrogen Potential In Indonesia's Energy Transition

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif revealed that countries in the world are expected to determine effective strategies to achieve energy and climate policy goals, focusing on one of the potential utilization of hydrogen.

Arifin said the energy transition requires a transformation towards a zero emission paradigm, namely a transition from fossil-based production and energy consumption to renewable energy sources. Hydrogen is one of the energy media' with zero carbon and is currently being seriously considered to be implemented in low-carbon transport, industrial decarbonization, and power plants.

"Recognizing the magnitude of the EBT potential, Indonesia hopes that hydrogen can play an important role in the energy transition and make a significant contribution to the roadmap to carbon neutrality by 2060," said Arifin, Wednesday, December 6.

In achieving Indonesia's Net Zero Emission (NZE) target by 2060 or sooner, he said, the Government has included the use of hydrogen for transportation, starting in 2031, and for the industrial sector in 2041. The government has also developed a National Hydrogen Strategy to position hydrogen as an important contributor to the energy transition.

"The National Hydrogen Strategy serves as a guideline in determining the use of hydrogen in Indonesia. Including the current utilization, the direction and objectives of its development, as well as the action plans needed for hydrogen development in Indonesia. This document is a live document, which continues to be updated and revised, so that it is in line with changes in government policies and priorities," explained Arifin.

Through the use of hydrogen, Indonesia targets three strategic results, namely reducing dependence on fossil fuels. Then achieve the decarbonization target by developing the domestic hydrogen market, as well as exporting hydrogen and its derivatives to the global market to achieve the goal of decarbonization.

"Therefore, it is necessary to design clear regulations to encourage low-carbon hydrogen market growth. This will provide certainty and stability to industry players and investors, as well as ensure healthy competition and prevent market distortion. Indonesia also has the opportunity to become a global market hub, because it is in the form of an archipelagic country," added Arifin.

Indonesia has significant hydrogen production potential through various technologies. With a renewable energy potential of 3,686 gigawatts, Indonesia has the capacity to produce green hydrogen. Indonesia also has great hydrogen demand potential, covering various sectors, including electricity, transportation, industry, refineries, and city gas.

"The development of hydrogen in Indonesia is currently in the research and pilot project stage. PT PLN (Persero) has developed 21 green hydrogen production sites as a pilot project," he said.