Encourage Hydrogen Development, Ministry Of Energy And Mineral Resources For The Form Of Special KBLI

Director General of New Energy, Renewable, and Energy Conservation (EBTKE) Eniya Listiani Dewi. (Photo: Doc. Ministry of Energy and Mineral Resources)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) encourages the development of hydrogen as one of the alternative sources of clean energy in energy transition efforts.

Director General of New, Renewable Energy and Energy Conservation (EBTKE), Eniya Listiani Dewi, explained that the Ministry of Energy and Mineral Resources projects the growth of hydrogen demand to reach 9.9-million tons per year (Mtpa) in 2060 which comes from the industrial sector, transportation, electricity, and household gas network.

According to Eniya, considering the extraordinary potential of hydrogen as a clean energy solution is essential to form a special KBLI for hydrogen

"This step will not only provide legal certainty and regulations for industry players, but also encourage innovation, investment, and cross-sectoral collaboration needed to accelerate the development of the hydrogen ecosystem in Indonesia," said Eniya, quoted on Wednesday, September 25.

One of the things that is encouraged to form a new KBLI, said Eniya, is hydrogen production. According to him, 70 percent of green hydrogen price makers come from the price of EBT electricity.

Therefore, the Directorate General of EBTKE needs to ensure the economy and sustainability of hydrogen in supporting energy transition efforts in Indonesia.

The proposed KBLI Hydrogen Code has gone through an urgency manuscript. We collaborated with UK MENTARI in the framework of the UK FCDO Programmes cooperation, to support the proposal of the KBLI in the hydrogen field. We are targeting this study to be completed in the near future, and we will then convey it to the Central Statistics Agency (BPS)," said Eniya.

Not only as an effort to improve product security, the development of the Hydrogen KBLI Code also plays a role in supervising proper business activities and providing legal certainty for investors.

From the consumer side, the clear presence of standards will provide quality guarantees in the use of hydrogen as part of the future energy supply chain.

The government will continue to encourage the national hydrogen ecosystem to form. We hope that business actors will find it easier to obtain regulatory certainty and government support for investment in the hydrogen sector. Of course, we must also prepare ourselves for social issues that arise in line with the development of the hydrogen ecosystem in Indonesia. It is necessary to involve various roles of all stakeholders to properly educate and introduce hydrogen more friendlyly so that the acceptance conditions can support the creation of the hydrogen economy in Indonesia, "explained Eniya.

Eniya assessed that hydrogen development is not only able to reduce carbon dioxide (CO2) emissions, but also strengthen Indonesia's position in the global energy transition arena and support the achievement of renewable energy targets.

He said the potential for the hydrogen economy was promising, the world green hydrogen market is estimated to reach a value of 11 trillion US dollars by 2050, and will continue to grow.

"The growth is projected to reach 70 billion US dollars by 2060. From an environmental perspective, of course, IRENA's study informs us that currently our carbon is very high, 6 giga tons per year and the equivalent of 10 percent. If we use hydrogen 10 percent will be able to reduce. Indonesia has the potential to reduce 11.6 million tons of CO2 per year," said Eniya.

Furthermore, Eniya said, IRENA also predicts that the development of green hydrogen which includes hydrogen supply chains from production to applications will create up to 5.3 million new jobs in 2050.

For information, the initiation of the hydrogen KBLI discussion has started since October 25, 2023 with the involvement of various stakeholders.

The results of the discussion include considerations of the security aspects of each hydrogen supply chain starting from production, storage, delivery/distribution, and utilization so that specific licensing arrangements are needed for hydrogen energy, especially noncarbon green hydrogen and in the framework of risk-based licensing.

The proposal for a hydrogen KBLI is coordinated by the Ministry/Institution of supervisors under the Directorate General of EBTKE, one year before the discussion and determination of the 2025 KBLI Book.

In 2024, the Directorate General of EBTKE in collaboration with UK-MENTARI compiled a study of the KBLI Hydrogen. Previously, Kick-Off Meeting was held on 27 May 2024 and a series of one-on-one discussions with relevant stakeholders including BPS, BKPM, Ministry of Industry, Ministry of Transportation and others.