Empowering Indonesia's Energy Transition: Green Hydrogen Development Opportunities
Key Ideas
  • Indonesia identifies green hydrogen as crucial for decarbonization, energy security, and remote clean energy access.
  • Early initiatives include a national strategy and collaborations across sectors for hydrogen development.
  • Challenges include the need for demand creation, policy frameworks, and market readiness.
  • A call for international expertise aims to establish a comprehensive policy roadmap for Indonesia's hydrogen sector growth.
Indonesia is rich in renewable energy potential, with 333 GW available for both power generation and green hydrogen production. Recognizing the strategic importance of green hydrogen in decarbonizing hard-to-abate sectors, enhancing energy security, and enabling renewable energy integration, Indonesia has begun exploring its role in the energy transition. The government has laid the groundwork with a draft national strategy and roadmap for hydrogen development, alongside feasibility studies and pilot projects led by various stakeholders. However, to fully leverage the benefits of a hydrogen economy, Indonesia must swiftly establish supportive policies and incentives to drive market development and attract long-term investments. This includes regulatory frameworks, pricing mechanisms, risk-sharing tools, and industrial policy support. To address these needs, the Institute for Essential Services Reform (IESR) is seeking experts to analyze global best practices in hydrogen policy and incentives and develop a roadmap tailored to Indonesia over the next five years. Interested parties must submit proposals by June 18, 2025, for consideration. The goal is to ensure the continuity of hydrogen technology deployment and achieve the national strategy targets. This endeavor reflects Indonesia's commitment to advancing its energy transition and embracing green hydrogen as a cornerstone of its sustainable energy future.
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