Indonesia promotes Carbon Capture and Storage to drive decarbonization

Indonesia is positioning itself as a major player in the Asia-Pacific region for Carbon Capture and Storage (CCS) development to drive decarbonization and enhance investment attractiveness. Officials noted that CCS technology can capture over 90 percent of carbon emissions, helping hard-to-abate sectors such as oil and gas, cement, fertilizers, petrochemicals, and power plants maintain global competitiveness and prepare for future carbon taxes.

Indonesia possesses significant strategic advantages, including a large industrial base and an estimated CO2 storage potential of over 577.62 gigatons across onshore and offshore locations. The government is working to establish a policy foundation to ensure business certainty, including updates to the Indonesian Standard Industrial Classification (KBLI) 2025.

To accelerate implementation, leaders emphasized the need for synergy between the government, business sectors, academia, and international partners. Key focus areas for the industry include commercial CCS project implementation, cross-border CCS development, strengthening Monitoring, Reporting, and Verification (MRV) protocols, and the development of carbon markets to support Net Zero Emissions targets.