This Ministerial Regulation regulates the Implementation of Carbon Capture and Storage, as well as Carbon Capture, Utilization and Storage in Upstream Oil and Gas Business Activities by setting limits on the terms used in the regulation. The scope of this Ministerial Regulation includes regulations regarding: 1) Implementation of CCS; and 2) Implementation of CCUS. Carbon Capture and Storage (CCS) is an activity to reduce GHG emissions which includes capturing Carbon Emissions and/or transporting captured Carbon Emissions, and storing them to the Injection Target Zone safely and permanently in accordance with good engineering principles. Meanwhile, Carbon Capture, Utilization and Storage (CCUS) is an activity to reduce GHG emissions which includes capturing Carbon Emissions and/or transporting captured Carbon Emissions, utilizing captured Carbon Emissions, and storing them to the Injection Target Zone safely and permanently in accordance with good engineering principles.

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Minister of Energy and Mineral Resources Regulation No:2 of 2023

Badan Standarisasi Nasional (BSN) Indonesian Standard (SNI) for CCS Based on ISO

Presidential Regulation No:14 of 2024

Presidential Regulation No. 14 of 2024 (Perpres 14/2024) is a regulation in Indonesia that establishes a legal framework for carbon capture and storage (CCS) activities. The regulation was issued to help Indonesia meet its net zero emissions target by 2060. What does the regulation do?

  • Defines permitted areas for CCS activities

  • Sets limits on CCS business activities

  • Outlines licensing requirements and the process for awarding rights to CCS work areas

  • Allows for cross-border transportation and storage of CO2 from outside Indonesia

  • Establishes the basis for carbon pricing towards CCS activities

  • How does the regulation work?

  • The government designates a permitted carbon storage area and tenders it to potential CCS operators

  • CCS operators can request approval to implement CCS from the Minister of Energy and Mineral Resources

  • The government collects royalties from storage fees charged by CCS operators

  • What is the purpose of the regulation? The regulation aims to provide greater certainty for investors and businesses looking to engage in CCS. It also helps to mitigate carbon emissions and foster sustainable energy practices.

Ministerial Regulation No. 16/2024 of the Ministry of Energy and Mineral Resources (ESDM) of Indonesia regulates the implementation of Carbon Capture and Storage (CCS) activities. The regulation was issued on December 20, 2024 and promulgated on December 24, 2024.

Purpose

  • To provide legal certainty for the industry

  • To support the implementation of CCS as a reliable and sustainable decarbonization solution

  • To help Indonesia achieve its Net Zero Emission (NZE) and Nationally Determined Contributions (NDC) targets

Permits

  • Exploration Permit: Grants rights to conduct geological studies and identify Injection Target Zones (ZTI)

  • Storage Operations Permit: Authorizes CO2 injection and long-term storage within designated WIPK areas

  • Transportation Permit: Allows the transport of CO2 via pipelines to injection sites

Benefits

  • The regulation is expected to bring new opportunities for industries

  • The regulation is considered strategic to increase Indonesia's competitiveness in the global energy sector

  • The regulation opens up greater investment opportunities

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Tender Process of a CCS Concession Area (which is not part of an Oil and Gas Concession Area)

Minister of Energy and Mineral Resources Regulation No:16 of 2024