Jakarta: Indonesia is setting an ambitious goal to attract $25.2 billion in private sector investment for green hydrogen development by 2060, according to the Ministry of Industry. This strategic initiative aims to avert a potential energy crisis in the industrial sector while also contributing significantly to the nation’s carbon reduction efforts, targeting a cut of 912 million tons of CO2 emissions by 2030.

The push towards green hydrogen is part of Indonesia's broader strategy to transition to cleaner energy sources. "Although the production costs are still relatively high, the business potential for green hydrogen far surpasses that of conventional hydrogen," stated Dendy Apriandi, Director of Investment Deregulation at the Ministry of Industry, on Thursday.

A key player in this green energy shift is the state-owned oil and gas giant Pertamina, which has committed $11 billion towards achieving its green energy objectives. Pertamina's investment underscores the growing confidence in green hydrogen as a viable alternative to traditional fossil fuels.

Green hydrogen is produced through electrolysis, a process that splits water into hydrogen and oxygen using electricity derived from renewable sources like solar, wind, or hydropower. This method results in a clean, emission-free fuel, positioning green hydrogen as one of the most sustainable energy solutions available.

With the potential to replace fossil fuels, green hydrogen is expected to play a crucial role in decarbonizing heavy industries, powering long-haul transportation, and providing long-term energy storage solutions. As Indonesia positions itself at the forefront of this emerging sector, the country’s commitment to green hydrogen could be a key driver in its transition to a more sustainable energy future.