Govt encourages renewable energy development

  • 13 May 2024

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Bisnis Indonesia - Pemerintah dorong pengembangan energi baru

13 May 2024

Jakarta, ID – Energy and Mineral Resources Ministry General Secretary Dadan Kusdiana revealed that the government was continuously developing new energy sources, such as blue ammonia, hydrogen, and sustainable aviation fuel (SAF), as strategic measures to achieve net zero emission (NZE) by 2060. This was stated at the Mitra UNRI Exhibition Day (MUED) event in Riau, Pekanbaru on Wednesday (8/5/2024).

Blue ammonia production is carried out by converting natural gas into syngas that is then reacted with nitrogen. “The groundbreaking has been conducted by the President. We will produce 875 thousand tonnes of ammonia. The process is emission-free, so we expect the price to be different when it is sold,” Dadan explained.

Furthermore, Dadan revealed that ammonia was currently being researched and developed as fuel, similar to LPG, LNG, and natural gas. “We want to boost the production so that it can be an emission-free fuel in the future. We are continuously pushing the utilisation of clean fuel in all modes of transportation,” he stated.

Another technology is hydrogen that offers abundant clean energy. As it has no emission, easy to obtain, and can be stored easily in many forms, hydrogen is a promising choice to address air pollution and fulfil energy demand in the future.

Dadan revealed that Indonesia has one hydrogen fuel station in Jakarta, even though there are not many hydrogen-powered vehicles in Indonesia. This is carried out to study how to carry, store, and fill hydrogen into vehicles to obtain an experience in utilising hydrogen-powered vehicles.

“Hydrogen is derived from water, not from natural gas. If it were sourced from natural gas, it would not qualify as a new energy source, and its impact on efforts to enhance energy security would be insignificant,” Dadan explained.

Additionally, the government successfully conducted an inaugural flight on 27 October using the SAF J2.4 biofuel made from palm kernel oil for the Jakarta-Solo route. This SAF is produced by blending NRE fuel with conventional jet fuel.

Through these efforts, Indonesia is affirming its commitment to establishing a greener, cleaner, and more sustainable future for future generations. This commitment extends beyond the national level to fulfil its global responsibility in combating climate change.

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