Unlocking Indonesia’s CCS Potential Through Cross-Border Collaboration

Indonesia is rapidly advancing its commitment to a low-carbon future, with Carbon Capture and Storage (CCS) emerging as a cornerstone of its national decarbonization strategy. With vast geological storage potential, Indonesia is uniquely positioned to serve as a cross-border carbon storage hub, particularly for neighboring countries with limited domestic storage capacity. As global emitters seek reliable carbon sequestration solutions, international collaboration is becoming increasingly essential—not only to scale deployment, but to establish a secure and investable CCS value chain that will deliver long-term economic and environmental benefits.

The Indonesia Carbon Capture and Storage Forum (ICCSF) continues to highlight the importance of international cooperation, regulatory alignment, and public-private partnerships. These collaborations are crucial for overcoming technical, legal, and financial barriers, and for building a robust, scalable CCS ecosystem that attracts substantial investment.

Countries such as Singapore, South Korea, and Japan are actively engaging with Indonesia. Joint studies and pilot projects are underway to explore transboundary CO₂ transport and geological storage opportunities, laying the groundwork for shared carbon management solutions. These cross-border efforts are not just about addressing climate change—they are also unlocking economic opportunities.

The multiplying effects of CCS in Indonesia are significant. It is estimated that the growing CCS sector could create up to 170,000 new jobs by 2030, spanning technical, regulatory, and logistical roles, as well as research and development positions. These opportunities will support local communities, boost industrial development, and create a skilled workforce to manage this cutting-edge technology. The CCS sector is not just an environmental solution; it is becoming an economic powerhouse that will benefit Indonesia’s labor market and broader economy.

These international efforts are forming the foundation for cross-border CCS value chains, where CO₂ captured in industrial centers abroad can be transported and permanently stored in Indonesia. The Indonesian government has introduced several regulations to govern and oversee CCS activities—covering technical standards, licensing processes, and environmental safeguards. Forthcoming derivative regulations are expected to further enable carbon credit markets, fiscal incentives, and streamlined permitting frameworks, creating a favorable environment for continued investment.

With its Enhanced Nationally Determined Contribution (NDC) to reduce 914 MtCO₂e by 2030, Indonesia is prioritizing CCS as a critical emissions reduction tool. The national roadmap features over 15 CCS projects in various stages of planning and development—many strategically located near industrial zones and export routes—highlighting growing interest from both local and international stakeholders seeking scalable, cost-effective solutions. These projects are projected to generate up to $43 billion in investments, signaling immense economic value and global confidence in Indonesia’s CCS potential.

To support this momentum, Indonesia is accelerating infrastructure development, including the rollout of CO₂ pipeline corridors, interim storage facilities, and multi-user injection sites. These components form the backbone of a connected CCS infrastructure capable of supporting both domestic and cross-border emitters.

Cross-border CCS collaboration also entails policy harmonization, technical capacity building, and knowledge-sharing among governments, research institutions, and industries. Indonesia’s adoption of ISO standards for CO₂ measurement, reporting, and verification—coupled with its #2 ranking in the 2024 Global CCS Institute Regulatory Indicator Report for Asia-Pacific—underscores its emerging leadership in CCS governance and readiness.

With strong government backing, vast geological capacity, and growing engagement from international partners, Indonesia is well on its way to becoming a premier destination for cross-border carbon storage. Continued cooperation with like-minded countries and industry stakeholders will be essential to scaling up deployment, driving investment, and delivering real progress toward global climate targets.

As the world intensifies its climate action, Indonesia is stepping forward as a key enabler of cross-border CCS collaboration—offering practical, scalable solutions for carbon management, creating new jobs, attracting investment, and paving the path to a more sustainable, low-carbon future.