Indonesia's Push for Carbon Capture and Storage to Combat Climate Change

By Warrence Oghenevwegba

Published on: July 31, 2024, 9:27 A.M

The Indonesian government is making significant strides in developing its carbon capture and storage (CCS) industry as a key measure in the fight against climate change. A senior official confirmed the administration's strong focus on utilizing the country's extensive storage capacity in saline aquifers and depleted oil and gas reservoirs to sequester carbon dioxide. This move aligns with Indonesia's strategy to support East Asian countries, such as Japan, South Korea, and Singapore, in reducing their carbon emissions through international carbon storage solutions.

Coordinating Minister of Maritime and Investment Affairs, Luhut Pandjaitan, emphasized the government's intention to streamline regulations to attract foreign investment in carbon capture and storage projects. The new regulations, introduced earlier this year, permit CCS operators in Indonesia to allocate up to 30% of their storage capacity for carbon dioxide originating from abroad. 

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In line with this, Indonesia has signed a letter of intent with Singapore for cross-border CCS collaboration and is actively pursuing similar partnerships with Japan and South Korea. Furthermore, Indonesia has approved development plans for three major gas projects that incorporate CCS technology: BP's Tangguh project, INPEX's Abadi project, and Repsol's Sakakemang project.

Luhut expressed confidence that the upcoming government, potentially led by president-elect Prabowo, will continue to prioritize the expansion of the CCS industry. He noted that this initiative is vital for Indonesia's future in addressing global climate change challenges and reducing greenhouse gas emissions.