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Analysts, businesses cast doubt on Indonesian cross-border CCS
Experts and businesses are skeptical about the demand from industries abroad to store CO2 in Indonesia, while the scheme alone is unlikely to be helpful from an environmental standpoint.
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Chevron Indonesia Company operates an offshore platform in Sepinggan field in Makassar Strait, 37 kilometers east of Balikpapan, East Kalimantan, on April 23, 2019. (JP/Novi Adri)
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ndonesia has issued a new regulation that will allow foreign entities to store their carbon emissions in the country’s carbon capture and storage (CCS) facilities, but experts and businesses say implementing the scheme will be challenging and unlikely to be helpful from an environmental standpoint.
Article 35 of Presidential Regulation No. 14/2024 allows CCS contractors in the country to allocate 30 percent of their total storage capacity for foreign use with the remainder being earmarked for domestic use.
This allocation could still change along the way depending on a decision set by the task force led by the Office of the Coordinating Maritime Affairs Minister.
The article also states that only carbon producers investing in Indonesia or those who are affiliated with domestic investment are allowed to transport and inject the carbon in the country.
Moshe Rizal, who heads the investment committee of the Association of Oil and Gas Companies (Aspermigas) told The Jakarta Post on Feb. 1 that he was skeptical about the demand from industries abroad to store CO2 in Indonesia.
“Honestly, worldwide, deployment of cross-border carbon storage is still ambiguous, not only in Indonesia,” he said, adding that countries like Japan and Korea may still show interest in the scheme.
Japanese interest in using CO2 storage at the Tangguh field in Teluk Bintuni, West Papua may be one example.
