Draft Regulation for Hydrogen Development by Bappenas

The Ministry of National Development Planning/National Development Planning Agency (Badan Perencanaan Pembangunan Nasional - “Bappenas”) has revealed a number of challenges in the development of low-carbon hydrogen. Bappenas Middle Planner Nur Laila Widyastuti explained that there are at least a number of challenges ranging from the regulatory level to production in the development of hydrogen.

“When we talk about renewable energy, it is true that at present it cannot compete in terms of price with fossil fuels, so government intervention is needed in this regard,” she explained.

Laila explained that, from a regulatory perspective, there are still no government regulations or infrastructure in place for hydrogen development in Indonesia. Additionally, from a cost perspective, hydrogen production is hindered by several factors, including expensive electricity affecting production costs, high electrolyzer prices, and limited production capacity.

Regarding regulatory compliance, Laila explained that Bappenas is currently preparing the process of drafting hydrogen regulations for the period of 2025 to 2029. The preparation of these regulations is the first of four stages in the development of low-carbon hydrogen implementation until 2045 as an effort to achieve net zero emissions.