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Govt prepares to implement incentives for carbon capture projects
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An oil and gas rig in the offshore Kepodang Field in the Muriah Block operated by Saka Energi Muriah Limited is seen in this file photo. (SKK Migas/SKK Migas.)
T
he government is preparing implementing regulations that will enable incentives for carbon capture storage (CCS) projects in the country, following the issuance of Presidential Regulation No. 14/2024.
Tutuka Ariadji, the Energy and Mineral Resources Ministry’s oil and gas director general, said that the ministry was working with the Finance Ministry to decide the forms of incentives to be provided for the projects. The two will also discuss storage fees and royalties for CCS development.
“Some 27 out of the 128 basins are [categorized as] discovery basins and the rest are only prospective ones that have yet to be explored,” Tutuka told reporters in a press conference on Tuesday.
The figure includes 20 already producing basins, the largest of which is located in the North East Java basin and the smallest in the Bawean basin.
Indonesia boasts 572.7 gigatonnes of prospective saline aquifer storage resources and 4.85 gigatonnes of contingent depleted oil and gas reservoirs, which could be used as carbon capture projects, energy ministry research and development unit (Lemigas) data show.
Tutuka stressed that the oil and gas industry is likely to consider 10 percent of these estimates in their calculations, especially those categorized as prospective resources that have not yet been used to inject carbon.
Read also: Analysts, businesses cast doubt on Indonesian cross-border CCS
