The Ministry of Energy and Mineral Resources (ESDM) of Indonesia has recently issued regulations governing Carbon Capture and Storage (CCS) technology, aiming to unlock new opportunities for various industries while addressing existing challenges, such as infrastructure development.
The new regulations, outlined in Ministerial Regulation No. 16/2024, were officially released on December 20, 2024, and came into effect on December 24, 2024. This comprehensive legislation comprises 29 chapters and 75 articles.
Yayan Satyaki, an Energy Economics expert at Padjadjaran University, believes these regulations will significantly benefit the upstream oil and gas sector.
However, Satyaki acknowledges that the successful implementation of CCS in Indonesia faces several hurdles, particularly concerning the necessary supporting infrastructure.
Marjolijn Wajong, Executive Director of the Indonesian Petroleum Association, expressed enthusiasm for the issuance of these regulations, emphasizing the crucial role they play in providing legal clarity and certainty for industry players.
“CCS will support Indonesia’s plan to achieve the Net Zero Emission (NZE) target, while enabling economic growth by providing solutions for industries that are difficult to decarbonize,” stated Marjolijn.
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CCS technology has the potential to drive economic growth by creating new jobs and attracting investments in clean energy technologies.
Indonesia’s unique geological landscape, featuring abundant saltwater aquifers and depleted oil and gas reservoirs, provides ideal locations for the safe and secure storage of carbon dioxide captured through CCS processes.
The development of CCS projects is expected to enhance Indonesia’s position as a regional hub for carbon storage, aligning perfectly with the country’s commitment at the COP29 climate conference in Baku, Azerbaijan, to assume a leading role in CCS initiatives.
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