Friday, 12 September 2025 04:26

Government Prepares Incentives and a Comprehensive Regulatory Framework to Encourage CCS Investment

On 10 September 2025, at the Fifth Asia CCUS Network Forum 2025, the Minister of Energy and Mineral Resources, Bahlil Lahadalia, whose speech was represented by the Director General of Oil and Gas, Laode Sulaeman, conveyed the government's commitment to offering incentives and benefits to investors willing to explore the potential of Carbon Capture Storage (CCS) in Indonesia. Furthermore, President Prabowo Subianto's directive was delivered, extending a welcome to the private sector's involvement in advancing the potential of CCS in Indonesia to support energy transition and other innovations. Indonesia has been identified as having the largest carbon storage potential in Southeast Asia, with estimates reaching 577 gigatonnes. Indonesia has also developed a comprehensive CCS/CCUS regulatory framework. Firstly, Presidential Regulation No. 14 of 2024 ensures legal certainty and facilitates business strategies for investors seeking to develop CCS in oil and gas blocks or independent projects.

Secondly, Minister of Energy and Mineral Resources Regulation No. 02 of 2023, which provides technical regulations for the implementation of CCS in oil and gas cooperation contracts; and Minister of Energy and Mineral Resources Regulation No. 16 of 2024, which regulates exploration permits, tender mechanisms, operating permits, and others. Furthermore, 19 CCS/CCUS projects are currently in development, with the Asri CCS project between Pertamina and Exxon being the most advanced. The total storage capacity is estimated at 2.9 gigatons, making it well-suited to meet both domestic and international carbon storage needs. The development of CCS/CCUS has the potential to offer a multifaceted benefits package, including the reduction of emissions, the promotion of economic growth through investment, job creation and enhanced competitiveness.

Source: https://migas.esdm.go.id/post/dorong-investasi-ccs-pemerintah-siapkan-insentif-dan-kerangka-regulasi-komprehensif 

 

 

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