Indonesia Positions Itself as the Leading CCS Hub in Asia-Pacific
Indonesia is fast solidifying its position as the most promising Carbon Capture and Storage (CCS) hub in the Asia-Pacific region, backed by robust regulatory updates, maturing infrastructure, and rising regional partnerships. With a growing urgency to meet net-zero targets under the Paris Agreement, Indonesia is leveraging its vast geological storage potential, progressive policies, and strategic location to become a key regional carbon storage provider—serving both domestic and international emitters.
The Indonesian government has sharpened its regulatory framework to support CCS development. Following the foundational Presidential Regulation No. 98/2021 on Carbon Economic Value and Ministerial Regulation No. 17/2022 for carbon trading implementation, the government issued Ministerial Regulation No. 7/2023, which lays out comprehensive technical and environmental guidelines for CCS operations in the upstream oil and gas sector, covering CO₂ injection, monitoring, transportation, and post-closure responsibilities. These regulations were followed by the 2024 Government Regulation Draft (RPP) on CCS/CCUS, which expands the legal foundation for cross-border CO₂ transport and commercial storage by third parties, a crucial step in establishing Indonesia as a regional storage hub.
To accelerate implementation, the government established the National Task Force for CCS and CCUS Development in late 2023, tasked with coordinating regulatory alignment, facilitating project permitting, and enabling regional collaborations with countries such as Singapore, Japan, and South Korea. As a follow-up, Indonesia is preparing derivative regulations to include fiscal incentives, storage licensing schemes, and carbon credit valuation mechanisms, aiming to lower entry barriers for both domestic and foreign investors.
By 2050, the Asia-Pacific region is expected to require 13–16 billion tonnes of CO₂ storage capacity to meet decarbonization goals. Indonesia is preparing to meet a substantial portion of this demand, with at least 15 major CCS projects under development and a national CO₂ storage potential of over 400 gigatons, according to recent geological assessments. As of 2025, Indonesia is advancing several pilot and commercial projects, including those led by Pertamina, BP, ExxonMobil, Repsol, and Japan’s JOGMEC, particularly in Sumatra, East Kalimantan, and the North Natuna Sea.
The upstream oil and gas industry is the primary driver of Indonesia’s CCS initiatives, but hard-to-abate sectors such as cement, petrochemicals, and smelting are increasingly exploring CCS as a decarbonization pathway. Notably, cross-border CO₂ shipping from Singapore to Indonesia is now entering feasibility and regulatory harmonization stages, positioning Indonesia as a storage service provider to nations with limited geological capacity.
Beyond emissions reduction, CCS development offers significant socioeconomic benefits. According to government projections, the CCS sector could generate over 38,000 jobs and contribute more than US$2 billion annually to Indonesia’s GDP between 2030 and 2045, particularly in regions hosting geological basins and supporting industries. This aligns with Indonesia’s Just Energy Transition commitment to ensure a fair and equitable shift toward a low-carbon economy.
Indonesia’s leadership has gained global recognition. The 2024 Global CCS Institute Legal & Regulatory Indicator Report ranked Indonesia #1 in Southeast Asia and #2 in the Asia-Pacific region, acknowledging its clear regulatory pathway, inter-ministerial coordination, and proactive cross-border cooperation. Furthermore, Indonesia is integrating ISO 27914:2017 CCS standards and is engaged with the Asian Development Bank (ADB), World Bank, and the Energy Transition Mechanism (ETM) platform to mobilize climate finance and technical support.
With its strategic Indo-Pacific location, proactive governance, and growing technical capacity, Indonesia is poised to become the CCS gateway of Asia. The country’s model illustrates how emerging economies can turn climate obligations into economic opportunities—positioning itself not only as a leader in climate action but also as a regional solution provider in the global push for decarbonization.
