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Indonesia prepares green hydrogen incentives, tax breaks

Diposting pada 21 Juni 2024 oleh admin / Dilihat: 0 kali

Jakarta (ANTARA) – The Ministry of Energy and Mineral Resources (ESDM) is preparing regulations regarding the incentives and tax breaks needed by developers to boost the development of green hydrogen.

“This policy will later be included in the EBET Bill which is still in the evaluation stage,” said Andriah Feby Misna, Director of Various New and Renewable Energy at the Ministry, at the 2024 Indonesia International Hydrogen Summit in Jakarta, Thursday.

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

Misna said that later in the hydrogen regulations there would also be standards governing tax holidays, tax allowances, taxes and basic rules for carbon trading.

Based on data from the Ministry of Energy and Mineral Resources, the hydrogen production target in 2060 is 9.9 million tons per year (Mtpa).

This figure is calculated based on the anticipated needs of the industrial sector (3.9 Mtpa), the transportation sector (1.1 Mtpa), the electricity sector (4.6 Mtpa), and the household gas network (0.28 Mtpa).

“Apart from these four sectors, hydrogen also has the opportunity to become an export commodity,” he added.

On the same occasion, President Director of Pertamina Geothermal Energy (PGE) Julfi Hadi said, apart from incentives, tax breaks, price subsidies and funding are also important points that the government must prepare.

“So far there are no standard guidelines. “We hope that in the future there will be hydrogen export regulations, production and transportation standards, as well as a scheme for distributing electricity through national transmission (power wheeling),” added Hadi.

Meanwhile, Medco Power Indonesia CEO Eka Satria hopes that in the future, the government will create regulations that support sustainable industry and a low-carbon hydrogen ecosystem.

“This can encourage the entry of foreign investment,” he added.

According to Seno Adhi Damono, senior advisor at Hydrogen Energy Center Indonesia, investing in hydrogen development can help create a more environmentally friendly future.

“The development of hydrogen technology can reduce dependence on the use of fossil fuels,” he said.

Deputy for Maritime Sovereignty and Energy at the Coordinating Ministry for Maritime Affairs and Investment, Jodi Mahardi, said that Indonesia is geographically close to countries that have a high need for clean hydrogen.

Japan, South Korea and Singapore, for example, together represent a hydrogen market of around 4 Mtpa.

Indonesia has the second largest gas reserves in Asia-Pacific and the third largest CO2 storage potential in the region for blue hydrogen.

Meanwhile, in terms of green hydrogen, Indonesia has the second largest geothermal potential in the world and a potential solar power capacity of more than 200 GW.

“The hydrogen sector presents new opportunities for Indonesia to utilize abundant energy resources to drive higher economic growth,” said Mahardi.

Related news: The government supports PLN to develop hydrogen as an alternative fuel
Related news: Green hydrogen as an instrument for the clean energy transition

Translator: Faisal Yunianto, Cindy Frishanti Octavia
Editor: Anton Santoso
Copyright © ANTARA 2024

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Indonesia prepares green hydrogen incentives, tax breaks

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Indonesia prepares green hydrogen incentives, tax breaks

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