Carbon Capture, Utilisation and Storage in Indonesia

Indonesia’s remarkable economic growth over the past half-century has had major implications for its energy sector and emissions, with coal playing a large role in both. Young power plants and industrial facilities producing cement, iron and steel will need clean energy alternatives and energy efficiency measures in order for Indonesia to reach its net zero emissions by 2060 target. Carbon capture, utilisation and storage (CCUS) can be an important technology to help achieve that goal.

Indonesia is already taking meaningful steps, finalising the first regulatory framework for CCUS in Southeast Asia in early 2023. However, for CCUS to play its diverse role in Indonesia’s decarbonisation further steps are needed to expand the current framework beyond the oil and gas sector.

This policy brief examines opportunities for CCUS deployment in industry, electricity generation and fuel transformation. It offers key considerations to build out Indonesia’s existing regulatory framework to enable the decarbonisation of other sectors and put Indonesia in a position to lead regional CCUS deployment.