Green Hydrogen as a Catalyst for Indonesia’s Energy Transition: Challenges, Opportunities, and Policy Frameworks

Abstract

Global climate change necessitates deep decarbonization of all economic sectors due to significant greenhouse gas emissions. Indonesia has committed to reduce emissions by adding the share of renewable energy contribution to the nation’s energy mix. Green Hydrogen (GH2) emerged as a key element in the energy transition due to its environmentally friendly and diverse applications in energy and industry sectors. This study provides comprehensive analysis of the GH2 adoption in Indonesia. By leveraging the renewable energy potential, Indonesia is economically viable to produce GH2 in 2031, aligning with the National Hydrogen Strategy. The study highlights the potential benefits of GH2 including reduction of greenhouse gas emissions, supporting net zero targets, creating green jobs, and increasing renewable energy integration. Additionally, the analysis emphasizes the importance of government support in the development of regulatory framework, including establishing a clear national hydrogen strategy, implementing targeted fiscal policies, and developing GH2 production, safety, and certification standards. The proposed regulatory framework emphasizes the importance of carbon taxation, public awareness campaigns, and fostering a skilled workforce. By addressing existing regulatory gaps and enhancing stakeholder collaboration, Indonesia can effectively integrate GH2 into its energy mix, paving the way for a competitive green hydrogen economy.