- Business actors operating within the oil-and-gas sector are currently awaiting the issuance of follow-up Regulations (aturan lanjutan) that specifically address the operation of carbon capture and storage ("CCS") facilities and capture utilization and storage ("CCUS") facilities within Indonesia. The existing frameworks that cover this area are Regulation of the Minister of Energy and Mineral Resources No. 2 of 2023 ("Regulation 2/2023") and Regulation of the President No. 14 of 2024 ("Regulation 14/2024").
- According to Deny Riyadi, Chairman of the Energy Transition Committee Indonesian Petroleum Association, neither Regulation 2/2023 nor Regulation 14/2024 address the issuance of operational licenses, meaning that further frameworks will have to be introduced that properly regulate CCS/CCIS within Indonesia. In this regard, the current state of play is that various oil-and-gas business actors are waiting for exploration permits to become available so that they can initiate CCS/CCUS projects within Indonesia. This will require the issuance of a specific exploration-related Regulation capable of accommodating special area permits.
- Mr. Riyadi has further stated that 15 topics specifically addressed under Regulation 14/2024 require further regulation. These topics include the preparation of permit areas for the storage of carbon, carbon injection and carbon transportation.
- For more on this story, see Hukumonline: “15 Topik Regulasi Turunun CCS Versi Industri Migas”.
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