Indonesia’s CCS Industry Shows Promising Growth, Regulatory Framework Needs Strengthening
- STIC CEGIR
- Jun 25
- 1 min read
Indonesia’s carbon capture and storage (CCS) industry is showing increasingly promising prospects in line with the government’s push for energy transition. Ariana Soemanto, Director of Upstream Oil and Gas Business Development at the Ministry of Energy and Mineral Resources (ESDM), stated that CCS technology is crucial for oil and gas projects due to its contribution to national economic growth. Currently, several CCS projects are underway, including in the Sukowati field, the Sunda Asri basin (a collaboration between Pertamina and ExxonMobil), the Masela basin (Inpex), the Sakakemang block (Repsol), and the Tangguh block operated by BP, which recently added a US$7 billion investment. Additionally, three independent CCS projects have been submitted to the government and are awaiting further direction.
Meanwhile, BP’s Head of CCUS Business Development, Daniel Fletcher, highlighted Indonesia’s strong potential in developing the CCS industry, supported by favorable geological conditions and an emerging regulatory framework. He praised the issuance of ESDM Ministrial Regulation No. 2 of 2023, which governs all CCS activities in a safe and permanent manner. However, he also emphasized the need for additional regulations, particularly to support cross-border carbon storage implementation. According to him, regulatory certainty and government incentives will accelerate the growth of the CCS ecosystem, attract financial institutions support, and ultimately strengthen Indonesia’s decarbonization efforts.
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