Indonesia Carbon Capture Storage
Indonesia is the fourth largest country in the world with approximately 280 million people, has the second longest coastline in the world after Canada, and possesses abundant natural resources: including oil, gas and minerals. Hydrocarbon activities are reported to contribute about 30% of Indonesia’s GDP. The island of Java contributes around 60% to the overall national economy and its where 70% of the country’s population is located.
Based on the International Energy Agency (IEA) study, Indonesia’s fossil fuel energy contributes to approximately 60% of CO2 emission in Indonesia. The country has pledged to achieve its net zero emissions target commitment by 2060 as was stated during COP28. Greenhouse gas emissions reduction through CCUS and methane abatement are two promising areas in a market with extensive oil and gas exploration, refining activities, mining operations, as well as coal fired, gas and diesel power plants.
The Government of Indonesia released the Presidential regulation No. 14/2024 on CCS in late January 2024. This presidential regulation marks a significant step forward for CCS project development on carbon dioxide collection, transport and storage in Indonesia.
Indonesia’s state-owned energy company, Pertamina, has stated there is high potential in CO2 storage capacity for Indonesia with up to 600 gigatons that is capable to fulfill both domestic and regional needs demands. This gives Indonesia about 482 years of CO2 storage capability.
The Indonesia Carbon Capture Storage Center (ICCSC) is identifying potential CCS cluster locations near major emission sources. Indonesia’s strategic location in the Indo-Pacific allows for strong potential as a CCS hub in cross-border operations in transporting CO2 among Singapore, Malaysia, Timor Leste and Australia. As a result, Indonesia has been actively promoting investment in downstream CD industries. These industries require CCS technology to mitigate emissions. Indonesia’s existing LNG transportation infrastructure can be repurposed for transporting CCS. With CCUS technology carbon intensive processes can reduce their carbon emissions in support of industries related to clean hydrogen, fertilizer, oil and gas, building materials, chemical, plastic and mineralization industries.
In November 2023, President Biden and President Jokowi elevated the U.S.-Indonesian relationship to the highest level of diplomatic relations possible through the Comprehensive Strategic Partnership or CSP. CCS developments were among the highlights from this heads of state visit. The U.S. Department of Commerce has a bilateral work plan with ICCSC to provide technical assistance on the development of Indonesia’s regulatory framework for the Indonesian CCS sector. Global energy companies such as BP, Chevron and ExxonMobil, are currently pm the development of CCS projects in Indonesia. The potential for these investments may make Indonesia a global leader in CCS activities in the near-future.
For more information, please kindly contact: Commercial Specialist Mr. Mario Simanjuntak (Mario.Simanjuntak@trade.gov)