Indonesia Green Hydrogen Contracting and Legislation
Yesterday, alongside our partners — A&O Shearman (Ginting & Reksodiputro), Baker McKenzie (Hadiputranto, Hadinoto & Partners), Herbert Smith Freehills (Hiswara Bunjamin & Tandjung), and Witara Cakra Advocates — we proudly launched four comprehensive reports on the financing and legislative frameworks essential for large-scale renewable energy and green hydrogen projects in Indonesia.
A heartfelt thank you to Andriah Feby Misna, Director of Various New and Renewable Energy at the Ministry of Energy and Mineral Resources (ESDM), and Nizhar Marizi, Director of Energy, Mineral, and Mining at the National Development Planning Agency (Bappenas), for opening the meeting and setting the stage for productive discussions.
Key Insights from the Discussions
Green Hydrogen Financing & Off-take:
A&O Shearman highlighted the importance of diversifying revenue streams, structuring off-take agreements strategically, and leveraging the unique roles of State-Owned Enterprises (SOEs) to drive project development forward.
Business Permits:
Herbert Smith Freehills proposed a structured licensing framework, advocating for legislative models that define green hydrogen, ensure public access, enable infrastructure development, and establish a more independent regulatory regime.
Green Hydrogen Certification:
Baker McKenzie emphasised the need for clear certification criteria, mutual recognition frameworks, transparency, adaptability, and strong government support to build confidence in Indonesia’s green hydrogen market.
Pricing & Government Support:
Witara Cakra Advocates discussed pricing models, drawing comparisons with existing subsidies in Indonesia’s mining, electricity, and oil & gas sectors. They introduced three green hydrogen pricing schemes: hybrid pricing, dynamic pricing, and a floor price approach.
This event marks a significant milestone in realising Indonesia’s green hydrogen potential. A big thank you to all the speakers, industry leaders, and policymakers who contributed to the valuable discussions.
To learn more about our regional collaboration efforts and support the Alliance, see here: APAC Green Hydrogen Alliance | Green Hydrogen Organisation
