Jokowi Signs Carbon Capture And Storage Rules, Here's The Contents

Indonesian President Jokowi (photo; Setkab)

JAKARTA - President Joko Widodo has signed a regulation regarding the technology for the capture and storage of carbon Capture and Storage (CCS) as stated in the Presidential Regulation of the Republic of Indonesia Number 14 of 2024 concerning the Implementation of Carbon Arrest and Storage Activities and set in Jakarta on January 30, 2024.

Article 3 of the regulation states that the discussion regarding the implementation of CCS in the Carbon Storage Permit Area is carried out by the holder of the permit based on the Exploration Permit and Storage Operation Permit.

Then in chapter III article 4 it is said to carry out CCS activities in the Working Area based on a Cooperation Contract and can be in the form of a profit-sharing contract with a return mechanism for operating costs, a gross split sharing contract or other cooperation contracts.

Still in Chapter III, article 6 is listed, in the context of holding CCS in the working area of carbon sources outside upstream business activities, SKK Migas gives considerations to the minister for the plan to develop the first field or POD or changes to the first field development plan that has been approved.

"SKK Migas has given approval for the next field development plan or changes to the next field development plan that has been approved as the next field has been approved," the regulation reads.

The regulation also regulates the offer of carbon storage areas. In Chapter IV article 9, it is stated that the minister offers a carbon storage permit area to a business entity or a fixed form of business. Offering for a carbon storage permit area is carried out through a limited selection or auction based on openness, justice, accountability and healthy competition.

Then in article 12, the business entity or fixed form of business that proposes the carbon storage permit area gets the right to match the highest bid (right to match) when it is considered to meet technical and financial capabilities in the limited selection evaluation process.

"The auction is carried out on the carbon storage permit area prepared by the minister," continued the contents of the Perpres.

Later the minister will grant an exploration permit after the winner of the limited selection or auction meets administrative, technical, environmental and financial requirements.

Article 17 states that exploration permits are valid for 6 years and can be extended once a maximum of 4 years. Later, exploration permit holders are prohibited from moving exploration permits.

The regulation states that the minister's approval of the development and operation plan (plan of development and operation) is targeted for injection (ZTI).

In Article 25, storage operational permits are granted a maximum of 30 years and can be extended by a maximum of 20 years for each extension taking into account storage capacity.

Permits for carbon transportation for carbon transportation via pipelines are also granted a maximum of 10 years for each extension. Meanwhile, carbon transport through trucks and ships is given a maximum of 20 years and can be extended for a maximum of 10 years for each extension.