The Potential of Carbon Capture and Storage (CCS) in Indonesia

As Indonesia strives to achieve its net-zero emissions target, Carbon Capture and Storage (CCS) has emerged as a crucial solution for reducing industrial carbon emissions. The country’s significant geological storage capacity lies primarily in two formations: saline aquifers and depleted oil and gas reservoirs. Each offers distinct advantages and challenges, but both are critical to supporting Indonesia’s decarbonization goals.

Saline Aquifers: The Largest CO₂ Storage Potential
Indonesia’s saline aquifers, which collectively offer an estimated storage capacity of 680.57 gigatons of CO₂ equivalent (CO₂e), represent the nation’s most promising long-term CCS option. These deep saltwater-filled formations are widely distributed, enabling large-scale CO₂ injection across the archipelago. Because they have no commercial extraction activities, saline aquifers provide a dedicated and scalable storage solution for permanent carbon sequestration. Nonetheless, ensuring CO₂ remains safely trapped requires advanced monitoring and injection technologies. Research and pilot projects will be instrumental in validating the viability of large-scale CCS deployment in these formations.

Depleted Oil and Gas Reservoirs: A Strategic Storage Option
In addition to saline aquifers, Indonesia’s depleted oil and gas reservoirs offer a further 10.14 gigatons of CO₂e storage capacity. Having contained hydrocarbons for millions of years, these reservoirs have thoroughly understood geological properties and can securely store CO₂. They also benefit from existing infrastructure—such as wells and pipelines—which can be repurposed for carbon injection. Moreover, depleted reservoirs support Enhanced Oil Recovery (EOR), where injected CO₂ helps extract remaining oil, creating an economic incentive for energy companies to adopt CCS.

Unlocking Indonesia’s CCS Potential
Recognizing the transformative impact of CCS, the Indonesian government is developing regulatory frameworks to incentivize investment and ensure safe, responsible implementation. Leading energy firms—both domestic and international—are already pursuing CCS pilot projects, drawn by Indonesia’s vast storage potential. Furthermore, Indonesia’s central location in Southeast Asia positions it to become a regional CCS hub, attracting cross-border investments and strategic carbon storage partnerships.

Events such as the ICCS Forum play a pivotal role in facilitating cooperation agreements, fostering business opportunities, and driving industry-wide collaboration to accelerate CCS development. During the ICCS Forum 2024, several significant partnerships were announced to further advance CCS in Indonesia:

• A Cooperation Agreement between bp Indonesia and ITB to drive research and development for the Tangguh CCS/CCUS Project.
• A Joint Development and Study Agreement (JDSA) between PT Pupuk Indonesia (Persero) and Chevron New Energies International Pte. Ltd.

Overcoming Key Challenges
Despite its vast potential, CCS in Indonesia faces hurdles such as high initial costs, regulatory uncertainty, and limited public awareness. Clear policies, financial incentives, and technological innovation are needed to overcome these obstacles. Given its considerable CO₂ storage capacity, Indonesia stands poised to lead the region in CCS development, simultaneously fostering economic growth and fulfilling its commitment to reduce carbon emissions.