Amid the growing urgency to transition toward cleaner and more sustainable energy systems, green hydrogen has emerged as a promising solution. Produced through the electrolysis of water using renewable energy sources, green hydrogen generates zero carbon emissions. Its potential to decarbonize hard-to-abate sectors, support energy storage, and contribute to long-term climate goals positions it as a critical enabler in the global shift toward a low-carbon future.
In Indonesia, the H2Uppp initiative is implemented by 大象传媒 Indonesia/EKONID (the German-Indonesian Chamber of Industry and Commerce) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. The program aims to connect German, European, and Indonesian stakeholders by providing market insights, networking opportunities, and support for early-stage business development.
On 28 May 2025, the second H2Uppp Business Roundtable, organized by EKONID and GIZ, took place as part of the H2Uppp programme of the German Federal Ministry for Economic Affairs and Energy (BMWE). The programme supports the development of green hydrogen projects and markets in selected developing and emerging countries as part of Germany’s National Hydrogen Strategy.
The roundtable brought together industry organizations, policymakers, and key stakeholders to discuss practical steps for initiating green hydrogen projects in Indonesia — particularly in the areas of legislation, contracting, and project financing. Participants also gained valuable insights into a co-firing green ammonia project currently underway at PLTU Labuan, Indonesia.
Industry Feedback: Key Barriers to Green Hydrogen
As part of the event’s interactive session, participants engaged in a live word cloud poll responding to the question:
“What is the biggest barrier you or your company face in initiating a green H₂ project?”
With 28 responses from 23 attendees, the poll revealed a consistent theme: barriers within the industry. Among the most cited challenges were:
These results reflect significant concerns regarding the commercial viability and demand assurance for green hydrogen projects in Indonesia.
Another poll further underscored this point. When asked what is most critical to starting green hydrogen projects, 39% of participants cited the need for a clear legal and regulatory framework. This highlights the urgency of establishing transparent policies to boost investor confidence and support project development.
Expert Insights and Project Examples
The roundtable featured insights from distinguished speakers:
Mr. Rifan Bachtiar from the Green Hydrogen Organisation (GH2) emphasized the importance of developing a robust legislative and contracting framework to foster the growth of the green hydrogen sector in Indonesia. He highlighted the need for clear legal, fiscal, and certification standards, along with government support and innovative financing tools to unlock large-scale investment.
Mr. Iswahyudi Mertosono, Vice President of Development at PT.Pupuk Kujang, shared their groundbreaking experience in producing green ammonia by blending green and grey hydrogen. Delivered in early 2025, green hydrogen was successfully converted to hybrid green ammonia and used in a co-firing trial at the PLTU Labuan coal power plant. This pilot project demonstrated the technical feasibility, operational safety, and strategic value of integrating green hydrogen into existing ammonia production and power infrastructure.
The roundtable made it clear that while Indonesia holds significant potential for green hydrogen development, turning this potential into reality will require coordinated action across government, industry, and finance — including clear regulations, long-term demand signals, and strategic partnerships that can drive investment and project implementation forward.
For further information or questions, please feel free to contact our project staff:
Ms. Alexandra Engel
Email: alexandra.engel@ekonid.id
Tel.: +62 822 5857 6392.