Heaptalk, Jakarta — The Ministry of Industry promotes the development of carbon-free alternative energy, including hydrogen. This effort aims to replace the country’s supply of fossil fuels as a response to the energy crisis affecting various nations.
As an environmentally friendly and versatile energy-carrying chemical compound, hydrogen can be utilized in diverse sectors, including transportation, power generation, heating systems, energy storage, and industrial raw materials. This initiative also supports Indonesia’s commitment to reducing Greenhouse Gas (GHG) emissions by 2030 and achieving Net Zero Emission (NZE) by 2060.
“The fertilizer, petrochemical, and refinery industries currently dominate the utilization of hydrogen in Indonesia. Most of the hydrogen used in the industrial sector is sourced from natural gas,” said Reni Yanita, Acting Director General of the Chemical, Pharmaceutical, and Textile Industries, during the opening of a focus group discussion (FGD) titled ‘Hydrogen Development as a Commodity’ in Jakarta (08/15).
Developing the industry
However, low-carbon hydrogen production technology is still relatively advanced and requires high costs. Therefore, to support the development of low-carbon hydrogen and as part of Indonesia’s commitment to reducing GHG emissions, the government needs to take strategic steps to maximize the potential of renewable natural resources, including developing the industry.
Reni added, “Hydrogen industry has emerged in the country, which is classified under the appropriate Indonesian Standard Industrial Classification (KBLI) for this commodity, specifically KBLI 20112 – Basic Inorganic Chemical Industry for Industrial Gases. The business licensing for KBLI 20112 falls under the supervision of the Ministry of Industry.”
More specifically, Government Regulation No. 5 of 2021 on implementing Risk-Based Business Licensing classifies Business Licensing under KBLI 20112 based on risk levels. In addition, the requirements for obtaining Business Licensing have been established 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 implementing Risk-Based Business Licensing in the Industrial Sector.
Therefore, Reni conveyed that the government is encouraging industries to develop low-carbon hydrogen production using energy and raw materials from renewable resources. In essence, low-carbon hydrogen has the same composition as regular hydrogen.
“To this end, the Ministry of Industry encourages this chemical compound to remain classified under KBLI 20112 to support ease of investment and provide business facilitation for industry players, as mandated by Government Regulation No. 5 of 2021 concerning the Implementation of Risk-Based Business Licensing,” Reni concluded.
