Indonesia is among the countries venturing into the development of Carbon Capture and Storage (CCS) technology, considered a key solution to address global climate change. CCS involves efficiently reducing greenhouse gas emissions by capturing carbon dioxide (CO2) from industrial and power generation processes and securely storing it underground.

Nicke Widyawati, President Director of PT Pertamina (Persero), highlights Indonesia's substantial potential for CO2 storage, estimated at up to 400 gigatons. This positions Indonesia as a potential hub for the implementation of carbon capture and storage (CCS) technology in Southeast Asia.

Indonesia is strategically developing regulations related to the CCS industry, which could attract investments and create new jobs domestically, particularly in the upstream oil and gas sector. The Ministry of Energy and Mineral Resources, in collaboration with relevant ministries under the coordination of the Ministry of Maritime Affairs and Investment, is currently drafting a Presidential Regulation on CCS and CCUS (Carbon Capture, Utilization, and Storage) to support emissions reduction.

However, Tutuka Ariadji, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, acknowledges the challenges in formulating CCS policies. To address this, Indonesia aims to learn from countries such as Canada, the United States, the United Kingdom, and Australia, which have established robust CCS policies and frameworks.

Meanwhile, Indonesia's Financial Services Authority (OJK) has released a series of rules for the establishment of a carbon exchange, with the goal of launching an onshore carbon trading market by the year-end.

The establishment of the exchange aligns with Indonesia’s initiatives as one of the world’s major carbon emitters to reduce emissions by more than 30% by 2030 and to achieve net-zero emissions by 2060.