The Ministry of Industry continues to encourage the development of carbon-free alternative energy to replace domestic fossil fuel supplies amid the energy crisis affecting several countries. This also supports Indonesia's commitment to reducing Greenhouse Gas (GHG) emissions by 2030 and reaching Net Zero Emission (NZE) by 2060.
One alternative energy source that can be developed is Hydrogen. As an environmentally friendly and versatile chemical energy carrier, Hydrogen can be used in many fields, including transportation, power generation, heating systems, energy storage and industrial raw materials.
“The use of Hydrogen in Indonesia is currently still dominated by the fertilizer, petrochemical and refinery industries. Most of the Hydrogen used in industry comes from natural gas,” the Acting Director General of Chemical, Pharmaceutical and Textile Industries, Reni Yanita, said when opening the Focus Group Discussion (FGD) on Developing Hydrogen as a Commodity in Jakarta on Thursday (15/8).
In addition, developing Hydrogen in Indonesia can support the use of renewable energy, mitigate climate change, create new energy markets and offer an alternative solution to current energy conditions.
However, Reni said low-carbon Hydrogen production technology is still relatively new and costly. Therefore, to support low-carbon Hydrogen development and help meet Indonesia's GHG reduction commitment, the government needs to take strategic steps quickly to maximize the potential of renewable natural resources, including by developing the Hydrogen industry.
The Directorate General of Chemical, Pharmaceutical and Textile Industries held the FGD on Developing Hydrogen as a Commodity on Thursday (15/8) to promote the use of Hydrogen in developing alternative energy. Participants included the Coordinating Ministry for Maritime Affairs and Investment, the Coordinating Ministry for Economic Affairs, the Ministry of Finance, the Ministry of Investment/BKPM, the Ministry of Energy and Mineral Resources, Statistics Indonesia, the National Research and Innovation Agency, and industry associations and businesses.
“There is already a Hydrogen industry in the country, and it is already under the appropriate Indonesian Standard Industrial Classification (KBLI) for the commodity, namely KBLI 20112 – Basic Inorganic Chemical Industry, Industrial Gases. Business licensing for KBLI 20112 falls under the Ministry of Industry,” Reni said.
Government Regulation Number 5 of 2021 on Risk-Based Business Licensing classifies KBLI 20112 business licensing by risk level. The requirements for business licensing are set out in Government Regulation Number 5 of 2021 and Minister of Industry Regulation Number 9 of 2021 on Standards for Business Activities and/or Products in Risk-Based Business Licensing in the Industrial Sector.
Reni therefore said the government is encouraging industry to develop low-carbon Hydrogen production using energy and raw materials from renewable resources. “Low-carbon Hydrogen has the same composition as ordinary Hydrogen. The Ministry of Industry therefore encourages Hydrogen to remain classified under KBLI 20112 to support ease of investment and ease of doing business for industry, as mandated by Government Regulation Number 5 of 2021 on Risk-Based Business Licensing,” Reni explained.
Government Regulation Number 5 of 2021 on Risk-Based Business Licensing mandates the government to make doing business easier for industry. “We hope regulations across all ministries/agencies can be simplified to support ease of investment and ensure businesses benefit from investing in Indonesia. In addition, developing Hydrogen as a strategic industrial product is expected to support decarbonization programs and build a conducive business climate to accelerate the national Hydrogen industry ecosystem,” she concluded.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia