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Indonesia Preparing Green Hydrogen Incentives

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The Indonesian Ministry of Energy and Mineral Resources (ESDM) is preparing regulations on incentives and tax breaks to step up the development of green hydrogen.

“This policy will later be included in the EBET Bill, which is still in the evaluation stage,” Andriah Feby Misna, the ministry’s Director of Various New and Renewable Energy, says.

“Apart from that, the government is also reviewing a national hydrogen strategy, which is expected to reduce the use of fossil fuels.”

Under the hydrogen regulation, there will also be standards governing tax holidays, tax allowances, taxes, and basic carbon trading regulations.

According to the ESDM Ministry, the hydrogen production target for 2060 is 9.9 million tons per year (Mtpa). This is based on the needs of the industrial sector (3.9 Mtpa), transportation sector (1.1 Mtpa), electricity sector (4.6 Mtpa), and household gas network (0.28 Mtpa).

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