Pelaku Industri Hulu Migas Sambut Baik Permen ESDM Terbaru Soal CCS

JAKARTA The upstream oil and gas sector players under the auspices of the Indonesian Petroleum Association (IPA) welcomed the issuance of the Minister of Energy and Mineral Resources Regulation (ESDM) Number 16 of 2024 which was promulgated on December 24, 2024, concerning the Implementation of Carbon Storage Activities.

This new regulation complements the legal framework that was previously regulated through the Minister of Energy and Mineral Resources Regulation Number 2 of 2023 concerning Carbon Implementation and Storage as well as Carbon Capture and Storage in Upstream Oil and Gas Business Activities, and Presidential Regulation Number 14 of 2024 concerning the Implementation of Carbon Capture and Storage Activities, which focuses on the activity of catching and storing carbon or commonly known as Carbon Capture and Storage (CCS).

"This regulation is an important milestone that provides legal certainty for the industry. With a complete regulatory framework, business actors now have clear guidelines to support the implementation of CCS as a reliable and sustainable decarbonization solution. In addition, CCS will support Indonesia's plan to achieve the Net Zero Emission target, while enabling economic growth by providing solutions for industries that are difficult to decarbonize," said IPA Executive Director, Marjolijn Wajong, Monday, January 6.

He assessed that CCS has great potential to support Indonesia in achieving the Nationally Determined Contributions (NDC) target by providing solutions for industries that need decarbonization, such as manufacturing, power plants, refineries, petrochemicals, steel, and cement.

In addition, he continued, CCS also provides opportunities for economic growth through job creation and investment in clean technology.

He also said that Indonesia has a unique and strategic geological formation, including salted aqueducts (saline aquifers) and oil and gas reservoirs that have run out (depleted reservoirs), which can safely store carbon dioxide (CO2).

According to the Ministry of Energy and Mineral Resources, Indonesia's carbon storage potential reaches 8 gigatons of CO2 in oil and gas reservoirs and 400 gigatons in salted aquifers.

CCS development is projected to increase Indonesia's appeal as a regional carbon storage center, which is in line with Indonesia's commitment to COP29 to become a leader in the CCS initiative in the region.

The Indonesian government is also actively establishing regional cooperation to accelerate the development of CCS, such as Indonesia-Singapore signing a Letter of Intent (LoI) for cross-border collaboration within CCS, which allows the transportation and storage of CO2 between the two countries.

Similar cooperation is also explored with Japan and South Korea to strengthen Indonesia's position as the CCS hub in Southeast Asia.

Meanwhile, on different occasions, the Executive Director of the Indonesia CCS Center, Btonna Troxylon Maulianda also said that this ESDM Permen not only supports Indonesia's vision towards a clean energy transition, but also opens up greater investment opportunities in CCS technology.

"With this regulation, Indonesia shows its seriousness in leading the implementation of CCS in the Southeast Asia region, which will provide environmental, social and economic benefits," he said.