Legal Services and the Determination of the Indonesian Standard Industrial Classification for Green Hydrogen Investment in Supporting Sustainable Investment in Indonesia

Sang Ayu Putu Rahayu; Rahayu Fery Anitasari; Dina Silvia Puteri; Asrul Ibrahim Nur; Dhita Widya Putri

doi:10.15294/ijals.v8i2.45526

Authors

Sang Ayu Putu Rahayu Faculty of Law, Universitas Negeri Semarang, Semarang, Indonesia Author https://orcid.org/0000-0001-6409-063X
Rahayu Fery Anitasari Faculty of Law, Universitas Negeri Semarang, Semarang, Indonesia Author https://orcid.org/0000-0001-9650-9685
Dina Silvia Puteri Faculty of Law, Universitas Negeri Semarang, Semarang, Indonesia Author https://orcid.org/0009-0007-6984-5975
Asrul Ibrahim Nur Ministry of Energy and Mineral Resources, Republic of Indonesia, Jakarta, Indonesia Author https://orcid.org/0000-0002-7799-2111
Dhita Widya Putri Faculty of Economics and Business, Institute of Economics, University of Debrecen, Debrecen, Hungary Author https://orcid.org/0009-0007-8028-6748

DOI:

https://doi.org/10.15294/ijals.v8i2.45526

Keywords:

Green Hydrogen, Investment, Investor, SDGs, KBLI

Abstract

Indonesia has significant potential for green hydrogen investment, driven by new and renewable energy (NRE) sources such as geothermal, solar, and hydropower, with projected demand reaching 2–5 million tons per year by 2040. This sector is particularly strategic for industrial decarbonization and heavy-duty transportation, with an investment target of US$25.2 billion (Rp395.58 trillion) by 2060. This potential presents opportunities for Indonesia to develop green hydrogen as a future energy pillar derived from renewable energy sources with zero carbon emissions, supporting the decarbonization of the heavy industry and transportation sectors. However, the realization of investment activities is intrinsically linked to licensing mechanisms and regulatory frameworks. In this context, legal certainty and the establishment of the Indonesian Standard Industrial Classification (KBLI) are crucial for facilitating business licensing and providing regulatory clarity for investors. The absence of a specific KBLI code for green hydrogen investment may engender legal uncertainty and administrative barriers that potentially impede investment realization. Therefore, determining a specific KBLI for green hydrogen investment is imperative to ensure legal certainty, strengthen the investment climate, and enhance investor confidence, thereby supporting sustainable investment in Indonesia. Establishing a clear regulatory framework through appropriate KBLI classification will not only provide legal certainty for the substantial capital injected but also create an incentive structure that attracts profit-oriented investments in this sector and enhances its economic viability. Ultimately, green hydrogen investment is not only economically beneficial but also a strategic sector for the advancement of clean, renewable, and environmentally friendly energy in Indonesia.

References

Aditya, Indra Ardhanayudha, Zulfa Berliana Pratiwi, Dzikri Firmansyah Hakam, and Prodia Nur Kemala. "Green Hydrogen as a Catalyst for Indonesia’s Energy Transition: Challenges, Opportunities, and Policy Frameworks." International Journal of Energy Economics and Policy 15, no. 2 (2025): 182.

Agung Pribadi, Miliki Potensi EBT 3.686 GW, Sekjen Rida: Modal Utama Jalankan Transisi Energi Indonesia, Kementerian Energi dan Sumber Daya Mineral, 4 Februari 2023, https://www.esdm.go.id/id/media-center/arsip-berita/miliki-potensi-ebt-3686-gw-sekjen-rida-modal-utama-jalankan-transisi-energi- indonesia#:~:text=Kementerian%20ESDM%20RI%20%2D%20Media%20Center%20%2D,Rida:%20Modal%20Utama%20Jalankan%20Transisi%20Energi%20Indonesia., accessed January 20, 2026.

Ajsa Habibic, Sembcorp and PT PLN move forward with green hydrogen project in Indonesia, Offshore-Energy.biz, 23 Oktober 2024, https://www.offshore-energy.biz/sembcorp-and-pt-pln-move-forward-with-green-hydrogen-project-in-indonesia/, accessed January 20, 2026.

Alam, Shahrukh Nawaj, Zaira Khalid, Bhaskar Singh, and Abhishek Guldhe. "Integration of government policies on the global level for green hydrogen production." In Green Hydrogen Economy for Environmental Sustainability. Volume 1: Fundamentals and Feedstocks, pp. 1-28. American Chemical Society, 2024.

Algburi et al., The green hydrogen role in the global energy transformations, Renewable and Sustainable Energy Transition 8 (2025) 100118, https://doi.org/10.1016/j.rset.2025.100118.

Amir Hossein Azadnia et al., Green hydrogen supply chain risk analysis: A european hard-to-abate sectors perspective, Renewable and Sustainable Energy Reviews 182 (2023) 113371, https://doi.org/10.1016/j.rser.2023.113371.

Angelico, Ruggero, Ferruccio Giametta, Biagio Bianchi, and Pasquale Catalano. "Green hydrogen for energy transition: A critical perspective." Energies 18, no. 2 (2025): 404.

ANTARA News. 2024. “Kementerian ESDM Siapkan Regulasi Percepat Pengembangan Hidrogen Hijau.” ANTARA, 20 Juni 2024. https://www.antaranews.com/berita/4160331/kementerian-esdm-siapkan-regulasi-percepat-pengembangan-hidrogen-hijau

Badan Pusat Statistik. Klasifikasi Baku Lapangan Usaha Indonesia (KBLI) 2025. Jakarta: Badan Pusat Statistik, 24 Desember 2025. Accessed January 27, 2026. https://www.bps.go.id/id/publication/2025/12/24/a9b2f130776c7bea36008556/klasifikasi-baku-lapangan-usaha-indonesia-kbli-2025-.html

Biggins, Flora, Mohit Kataria, Diarmid Roberts, and Solomon Brown. "Green hydrogen investments: Investigating the option to wait." Energy 241 (2022): 122842.

BioEnergy Times, Indonesia aims to secure $25.2 billion in private sector investment for green hydrogen development by 2060, 17 Agustus 2024, https://bioenergytimes.com/indonesia-aims-to-secure-25-2-billion-in-private-sector-investment-for-green-hydrogen-development-by-2060/, accessed January 20, 2026.

OECD. 2022. Equitable Framework and Finance for Extractive-based Countries in Transition (EFFECT). Paris: OECD Publishing. https://doi.org/10.1787/7871c0ad-en

Direktorat Jenderal Energi Baru, Terbarukan, dan Konservasi Energi, Penyusunan KBLI Dorong Percepatan Pengembangan Hidrogen sebagai Energi Masa Depan, 24 September 2024, https://ebtke.esdm.go.id/artikel/berita/penyusunan-kbli-dorong-percepatan-pengembangan-hidrogen-sebagai-energi-masa-depan, accessed January 15, 2026.

Direktorat Jenderal Energi Baru, Terbarukan, dan Konservasi Energi, “Penyusunan KBLI Dorong Percepatan Pengembangan Hidrogen sebagai Energi Masa Depan.” EBTKE – Kementerian Energi dan Sumber Daya Mineral Republik Indonesia, September 24, 2024. Accessed January 27, 2026. https://ebtke.esdm.go.id/artikel/berita/penyusunan-kbli-dorong-percepatan-pengembangan-hidrogen-sebagai-energi-masa-depan

Dolci, Francesco, Denis Thomas, Samantha Hilliard, Carlos Fúnez Guerra, Ragnhild Hancke, Hiroshi Ito, Mathilde Jegoux et al. "Incentives and legal barriers for power-to-hydrogen pathways: An international snapshot." International Journal of Hydrogen Energy 44, no. 23 (2019): 11394-11401.

Dyah Roro Esti Widya Putri. 2025. “Wamendag Tegaskan Peran Strategis Hidrogen dalam Diplomasi Perdagangan RI.” Kementerian Perdagangan Republik Indonesia, April 17, 2025. https://www.kemendag.go.id/berita/pojok-media/wamendag-tegaskan-peran-strategis-hidrogen-dalam-diplomasi-perdagangan-ri

EasyLegal. “Mengapa KBLI Penting.” EasyLegal. Accessed January 27, 2026. https://easylegal.id/glossary/mengapa-kbli-penting

ESDM (Kementerian Energi dan Sumber Daya Mineral). 2024. “Dorong Percepatan Pengembangan Hidrogen, Kementerian ESDM Bentuk KBLI Khusus.” Media Center ESDM. https://www.esdm.go.id/id/media-center/arsip-berita/dorong-percepatan-pengembangan-hidrogen-kementerian-esdm-bentuk-kbli-khusus

ESDM (Kementerian Energi dan Sumber Daya Mineral). 2023. “Kementerian ESDM Dukung Pengembangan Hidrogen Hijau.” Media Center ESDM. https://www.esdm.go.id/id/media-center/arsip-berita/kementerian-esdm-dukung-pengembangan-hidrogen-hijau

Halimatussadiah, Alin, Muhammad Adriansyah, Fachry Abdul Razak Afifi, Muhammad Yudha Pratama, Teuku Riefky, and Jiehong Lou. Indonesia's Decarbonization Plans Diagnostic: A Policy Paper. Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia, 2024.

Horri, Bahman Amini, and Hasan Ozcan. "Green hydrogen production by water electrolysis: Current status and challenges." Current opinion in green and sustainable chemistry 47 (2024): 100932.

Institute for Essential Services Reform (IESR). 2025. “Mengakselerasi Pemanfaatan Hidrogen Hijau melalui Penyusunan Peta Jalan Hidrogen Nasional yang Komprehensif.” https://iesr.or.id/mengakselerasi-pemanfaatan-hidrogen-hijau-melalui-penyusunan-peta-jalan-hidrogen-nasional-yang-komprehensif

Lhyfe. 2024. “Decarbonisation Strategies: Why Green Hydrogen Is a Key Player.” Lhyfe. July 30, 2024. Accessed January 27, 2026. https://www.lhyfe.com/more-about-hydrogen/decarbonisation-strategies-why-green-hydrogen-is-a-key-player/

Maulandy Rizki Bayu Kencana, Kejar Potensi Pasar Rp 167 Kuadriliun, Pemerintah Bentuk KBLI Khusus Hidrogen, Liputan 6, 25 September 2024, https://www.liputan6.com/bisnis/read/5711049/kejar-potensi-pasar-rp-167-kuadriliun-pemerintah-bentuk-kbli-khusus-hidrogen#:~:text=Diproyeksikan%20akan%20tumbuh%20USD%2070%20miliar%20atau,Lapangan%20Usaha%20Indonesia%20(KBLI)%20khusus%20untuk%20hidrogen, accessed January 21, 2026.

Ma, Nan, Weihua Zhao, Wenzhong Wang, Xiangrong Li, and Haiqin Zhou. "Large scale of green hydrogen storage: Opportunities and challenges." International Journal of Hydrogen Energy 50 (2024): 379-396.

Masoud, Najeb. "Driving green innovation: assessing the impact of environmental tax policies and green finance on heavily polluting industries." Social Transformations in Chinese Societies 21, no. 2 (2025): 111-139.

Manullang, Efrando, and Nazaruddin Sinaga. "Potential and challenges of hydrogen development as new renewable energy in Indonesia." REM (Rekayasa Energi Manufaktur) Jurnal 7, no. 2 (2022): 55-62.

Muhamad Alhaqurahman Isa dkk, Peta Jalan (Roadmap) Hidrogen dan Amonia Nasional, Kementerian Energi dan Sumber Daya Mineral Republik Indonesia, Direktorat Jenderal Energi Baru, Terbarukan, dan Konservasi Energi, Jakarta, 2025.

Muhdi Qorib, Pertamina Resmikan Groundbreaking Pilot Plant Green Hydrogen di Ulubelu, Ruang Energi, 9 September 2025, https://www.ruangenergi.com/pertamina-resmikan-groundbreaking-pilot-plant-green-hydrogen-di-ulubelu/#:~:text=Pertamina%20Resmikan%20Groundbreaking%20Pilot%20Plant%20Green%20Hydrogen,*%20Muhdi%20Qorib.%20*%20September%209%2C%202025, accessed January 21, 2026.

Osman, Siti Hasanah, Nurul Syazrah Mat Yatim, Omar Syah Jehan Elham, Norazuwana Shaari, and Zulfirdaus Zakaria. "Three decades of hydrogen energy research: a bibliometric analysis on the evolution of green hydrogen technologies." Sustainable Energy & Fuels (2025).

Rahayu, Sang Ayu Putu, Dina Silvia Puteri, Rahayu Fery Anitasari, dan Asrul Ibrahim Nur. 2025. “Green Hydrogen Management in ASEAN Countries from Investment Law Perspective.” Indonesian Journal of Environmental Law and Sustainable Development 4 (1). https://doi.org/10.15294/ijel.v4i1.25457

Rolo, Inês, Vítor AF Costa, and Francisco P. Brito. "Hydrogen-based energy systems: current technology development status, opportunities and challenges." Energies 17, no. 1 (2023): 180.

RWE AG. 2026. Hydrogen: Green Fuel for Climate Neutrality. Accessed January 27, 2026. https://www.rwe.com/en/our-energy/discover-renewables/hydrogen/

Surya Energi Indotama, Mengenal Hidrogen Hijau dan Potensi Besar Indonesia, Surya Energi Indotama, 16 Juni 2025, https://suryaenergi.co.id/mengenal-hidrogen-hijau-dan-potensi-besar-indonesia/, accessed January 20, 2026.

Tarubali PUPRKIM Prov. Bali MaSIKIAN, KBLI 2020 Sebagai Langkah pertama perizinan berusaha, 12 April 2024, https://tarubali.baliprov.go.id/kbli-2020-sebagai-langkah-pertama-perizinan-berusaha/#:~:text=Pentingnya%20KBLI%20sebagai%20Pedoman:%20KBLI,usaha%20mereka%20dengan%20lebih%20baik, accessed January 15, 2026.

Verda Nano Setiawan, RI Punya Potensi Energi Terbarukan 3.687 GW, Baru Dipakai 0,4%!, CNBC Indonesia, 9 Oktober 2025, https://www.cnbcindonesia.com/news/20251009102239-4-674266/ri-punya-potensi-energi-terbarukan-3687-gw-baru-dipakai-04#5, accessed January 20, 2026.

World Bank. 2020. “Minerals for Climate Action: The Mineral Intensity of the Clean Energy Transition”. Washington, DC: World Bank. https://www.worldbank.org/en/topic/extractiveindustries/publication/minerals-for-climate-action

Wong, Hon Leung Curtis, Nan Zhou, Farid Wijaya, Faricha Hidayati, and Dwi Cahyo Husodo. "Industry decarbonization roadmaps for Indonesia." Jakarta, Indonesia: Institute for equity Essential Services Reform (IESR) (2024).

Younus, Hussein A., Rashid Al Hajri, Nazir Ahmad, Noor Al-Jammal, Francis Verpoort, and Mohamed Al Abri. "Green hydrogen production and deployment: opportunities and challenges." Discover Electrochemistry 2, no. 1 (2025): 32.

Zhao, Wenhui, Jibin Ma, Zhanyang Wang, Youting Li, and Weishi Zhang. "Potential hydrogen market: Value-added services increase economic efficiency for hydrogen energy suppliers." Sustainability 14, no. 8 (2022): 4804.