The Ministry of Energy and Mineral Resources (ESDM) has issued Regulation No. 16 of 2024 on Carbon Storage Activities, effective December 24, 2024. The regulation has garnered positive responses from upstream oil and gas players under the Indonesian Petroleum Association (IPA). It complements prior legal frameworks, including ESDM Regulation No. 2 of 2023 and Presidential Regulation No. 14 of 2024, providing a comprehensive legal structure for Carbon Capture and Storage (CCS). According to IPA Executive Director Marjolijn Wajong, the regulation offers clear guidelines for implementing CCS as a reliable and sustainable decarbonization solution, aligning with Indonesia's goals for Net Zero Emission (NZE) and Nationally Determined Contributions (NDC). CCS is also expected to boost economic growth by creating jobs and attracting investments in clean technologies, leveraging Indonesia's geological potential, such as depleted reservoirs and saline aquifers capable of safely storing up to 408 gigatons of CO2.
Indonesia's proactive regional collaborations, such as a Letter of Intent with Singapore for cross-border CCS projects and similar initiatives with Japan and South Korea, position the country as a regional carbon storage hub. Dr. Belladonna Troxylon Maulianda, Executive Director of the Indonesia CCS Center, highlighted that the new regulation strengthens Indonesia's vision for clean energy transition while expanding investment opportunities in CCS technology. The issuance of ESDM Regulation No. 16 of 2024 marks a strategic step in enhancing CCS's legal framework, facilitating international partnerships, and ensuring proper licensing and supervision of CCS activities. By committing to lead CCS initiatives in Southeast Asia, Indonesia not only accelerates its energy transition but also reaps significant environmental, social, and economic benefits.
