Indonesia Eyes $25 Billion Investment to Power Green Hydrogen Revolution
Jakarta, The Gulf Observer: Indonesia will need an estimated US$25.2 billion from the private sector to support its green hydrogen development goals by 2060, according to the Ministry of Investment. This ambitious target is part of the country’s broader efforts to transition to green energy and reduce carbon emissions.
Dendy Apriandi, Director for Investment Deregulation at the Ministry of Investment, revealed on Thursday that several key players are already contributing to this initiative. Pertamina, the state-owned oil and gas company, has invested US$11 billion toward advancing green hydrogen technology, marking a significant step toward the nation’s green energy targets.
In addition, the Global Green Growth Institute (GGGI) has partnered with Samsung and Hyundai in a US$1.2 billion project located in the Sarulla Block, North Sumatra, to produce green hydrogen. This collaboration underscores the increasing interest and investment in green hydrogen as a viable energy solution.
Apriandi noted that while the potential for green hydrogen development is greater than that of conventional hydrogen derived from gray hydrogen or natural gas, the production costs remain high. Despite these challenges, green hydrogen is seen as a key component in Indonesia’s strategy to prevent energy crises and achieve its carbon reduction goals.
The Ministry of Industry has highlighted hydrogen as a sustainable alternative fuel and an ideal energy storage medium. The Indonesian government is committed to reducing 912 million tons of CO2 by 2030, with green hydrogen playing a crucial role in this effort.
Reni Yanita, the Ministry’s Acting Director General of Chemical, Pharmaceutical, and Textile Industries, emphasized the importance of hydrogen in supporting industrial sustainability and the nation’s broader environmental objectives.
This push for green hydrogen development reflects Indonesia’s dedication to reducing its carbon footprint and fostering sustainable energy solutions, positioning the country as a leader in the green energy transition in the region.
