As per the Ministry of Investment, Indonesia will need approximately US$25.2 billion from private sector investments to develop green hydrogen by 2060.
Dendy Apriandi, the Ministry’s Director for Investment Deregulation, revealed on Thursday that one of the key contributors to this development is state-run oil and gas company Pertamina, which has already invested US$11 billion to support Indonesia’s green energy goals.
The Global Green Growth Institute (GGGI), in collaboration with Samsung and Hyundai, is spearheading a US$1.2 billion project in the Sarulla Block, North Sumatra, focused on green hydrogen production.
Apriandi emphasized that the business potential of green hydrogen is much greater than that of conventional hydrogen derived from gray hydrogen or natural gas. However, the production costs for green hydrogen remain high.
The Ministry of Industry also underscored the strategic importance of hydrogen development in mitigating potential energy crises within the industrial sector, contributing to Indonesia’s target of reducing 912 million tons of CO2 emissions by 2030.
Reni Yanita, the acting Director General of Chemical, Pharmaceutical, and Textile Industries, stressed that hydrogen offers a sustainable alternative fuel and an ideal energy storage solution, which should play a crucial role in the nation’s green energy future.
