New Implementing Regulation in Indonesia on Carbon Capture Storage Activities in Licensed Areas

With its vast CO₂ storage potential, Indonesia is positioning itself as a key player in global carbon capture and storage (“CCS”) efforts.

Recognizing the need for clear regulations, the Government introduced Presidential Regulation No. 14 of 2024 (“PR 14/2024”), establishing a legal framework for CCS activities. This regulation outlines two distinct CCS schemes: one within the framework of oil and gas production sharing contracts (“PSC”) and another for non-PSC operators under a newly defined Carbon Storage License Area (“WIPK”).

To further clarify the implementation of CCS in non-PSC activities, the Minister of Energy and Mineral Resources issued MEMR Regulation No. 16 of 2024, which sets out key licensing and operational requirements. With this framework in place, Indonesia aims to provide greater certainty for investors and businesses looking to engage in CCS.

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