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Indonesia Needs Billions for Green Hydrogen Development

Arnes BiogradlijaBy Arnes Biogradlija16/08/20242 Mins Read
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Indonesia is set to require a massive investment of 25.2 billion USD from the private sector to develop green hydrogen between 2031 and 2060, according to the Ministry of Investment.

Dendy Apriandi, Director for Investment Deregulation at the ministry, emphasized that the country aims to cut carbon emissions by 43% by 2030. Achieving this ambitious target entails significant investments, and Indonesia is actively pursuing its green energy plans.

Pertamina, a state-owned energy giant, has already committed 11 billion USD to the development of green hydrogen. Furthermore, the Global Green Growth Institute (GGGI) is working with Samsung and Hyundai on a significant 1.2 billion USD project in North Sumatra aimed at green hydrogen production.

Apriandi pointed out that the business potential for green hydrogen exceeds that of conventional hydrogen produced from gray hydrogen or natural gas. However, the high cost of green hydrogen production remains a considerable challenge to its widespread adoption.

The Ministry of Industry has previously indicated that hydrogen development could mitigate energy crises in the industrial sector while helping reduce carbon dioxide emissions. The country has set a target to cut down 912 million tonnes of CO2 by 2030.

Indonesia is striving to transition from a coal-dependent economy to one that relies more on natural gas and renewable energy. This effort is part of its commitment to achieving net-zero emissions by 2060. The National Research and Innovation Agency has even proposed nuclear technology to tackle air pollution.

Additionally, the Indonesian Tourism and Creative Economy Ministry is making air travel more affordable, and there are initiatives to improve clean technology in fertilizer production. The government also plans to prioritize domestic investors in the new capital, Nusantara.

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