This study examines the urgent need to establish a specific Indonesian Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia/KBLI) for green hydrogen investment as a normative legal necessity within Indonesia’s sustainable energy transition and its commitment to achieving Net Zero Emissions (NZE) by 2050. In fulfilling its obligations under the Sustainable Development Goals (SDGs) and its national low-carbon development agenda, Indonesia has adopted various policies promoting renewable energy and green hydrogen development. Nevertheless, the current KBLI framework has not yet provided a distinct classification for green hydrogen-related activities, resulting in their continued inclusion under general gas or manufacturing categories that are normatively and technically inadequate. This study employs a normative legal research method, drawing on statutory and comparative approaches, to evaluate the coherence of Indonesia’s regulatory framework with the principles of legal certainty, regulatory clarity, and good governance. In addition, it compares Indonesia’s KBLI system with regulatory practices in selected jurisdictions that have established specific industrial classifications for green hydrogen. The analysis indicates that the misclassification of green hydrogen-related activities under the KBLI regime may result in significant legal and administrative consequences, particularly in business licensing, environmental permitting, and investment approval processes, as each KBLI category entails distinct regulatory obligations. Therefore, the establishment of a specific KBLI for green hydrogen constitutes not only an administrative adjustment but a normative imperative to ensure legal certainty, promote sustainable investment, and support technological innovation. Such regulatory reform is essential to accelerate the development of Indonesia’s clean energy ecosystem and to align national industrial governance with constitutional mandates and international sustainability commitments.
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