Indonesia’s economic development over the past half-century has been remarkable, with profound impacts on its energy sector. The country’s young power and industrial assets need clean energy alternatives and energy efficiency measures in order for Indonesia to reach its climate target of net zero emissions by 2060. This report aims to inform that carbon capture, utilisation and storage (CCUS) can be an important technology to help achieve that goal while advancing energy security and employment outcomes. It is set to play diverse roles in supporting Indonesia’s energy transition.
In March 2023, the Indonesian Ministry of Energy and Mineral Resources (MEMR) finalised Ministerial Regulation MEMR 2/2023. The regulation sets the stage for upstream oil and gas companies to undertake CCUS activities, including developing CO2 storage resources. For CCUS to play its role in Indonesia’s decarbonisation, subsequent ministerial regulations will be needed to create a broader CCUS framework. Indonesia is the most advanced economy in Southeast Asia for CCUS, with over 15 projects in development across the CCUS value chain.
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