Indonesia finalizes carbon capture and storage regulations

Indonesia has finalized regulations for the implementation of carbon capture and storage (CCS), strengthening efforts to reduce global carbon emissions.

Energy and Mineral Resources Secretary-General Dadang Kusudiana said on July 23 that the regulation is currently awaiting approval from President Joko Widodo before it can come into effect.

The official said the regulations have completed the harmonization process and are currently in the process of seeking presidential approval.

Kusudiana added that in addition to contributing through CCS, Indonesia is also working to expand the use of renewables and other low-carbon energy sources.

Indonesia, one of the world’s largest coal producers and exporters, has committed to reducing its greenhouse gas emissions by 31.89 percent on its own by 2030, and by 43.2 percent with international support.

In May 2023, the Indonesia Carbon Capture and Storage Center was established to support the development of low-carbon businesses including hydrogen, blue ammonia, green ammonia, blue methanol and green methanol in the Southeast Asian country.

In September 2023, President Joko Widodo launched Indonesia’s first carbon exchange, IDXCarbon, to facilitate carbon trading. The scheme allows companies and organisations focused on renewable energy to sell carbon credits to emitters such as coal producers.