Heaptalk, Jakarta — Amid growing global concerns over climate change, Indonesia faces mounting pressure to reduce its greenhouse gas emissions, which currently amount to approximately 700 million tons of CO₂ annually. As SEA’s largest economy and a major emitter, the country is now turning to Carbon Capture and Storage (CCS) as a key solution to meet its environmental commitments and unlock new foreign investment streams.
The Indonesian Carbon Capture and Storage Center (ICCSC), an independent accelerator organization, is leading efforts to develop the country into a regional CCS hub. According to Diofanny Swandrina Putri, Head of Developer at ICCSC, Indonesia’s natural endowment of subsurface storage capacity — particularly depleted oil and gas reservoirs — offers a significant advantage.
Diofanny, Head of Developer at ICCSC, explained that Indonesia’s geological potential makes it unique in the region. “Indonesia is geologically blessed. We have an estimated 700 gigatons of carbon storage capacity in depleted oil and gas reservoirs and saline aquifers. That’s enough to store over 1,000 years’ worth of Indonesia’s CO₂ emissions,” she explained.
Unlike many neighboring countries, such as Singapore and Japan, which face severe limitations in underground storage space, Indonesia has the capacity to offer long-term carbon storage services not just for its own industries but also for international emitters.
ICCSC’s vision is to develop a market-driven CCS ecosystem where commercial viability is as vital as environmental impact. Through its multi-stakeholder approach, ICCSC collaborates with government regulators, international partners, and industrial players to connect policy frameworks with practical implementation.
“We work with everyone, from ministries to multinationals. Our role is to connect the dots and expedite deployment. We want to ensure CCS becomes a real investment enabler, not just a technical concept,” she added.
The urgency for CCS is growing as investors place greater emphasis on sustainability. Diofanny noted that some major projects are now contingent upon the ability to implement carbon storage.
“We have seen investors delay decision until they are sure CCS can be done here. That’s why we call it a license to invest. If Indonesia can provide secure, regulated storage options, investment will follow, particularly in hard-to-abote sectors like petrochemicals, steel, and cement,” Diofanny voiced in the Forum Carbon Indonesia.
While CCS development comes with high upfront costs — up to $2 billion for a single CCS cluster — ICCSC believes this is a strategic opportunity to attract global green capital. The organization actively engages with countries like the United States, Norway, Japan, and Australia to exchange knowledge and build trust in Indonesia’s readiness.
Also, the government recently issued Presidential Regulation No. 14/2024 to support these efforts. This regulation provides the legal basis for CCS operations, including permitting processes and foreign ownership limits. The regulation reserves 70% of project ownership for domestic entities, underlining the government’s commitment to empowering local players.
Despite the absence of strong carbon pricing mechanisms in Indonesia, ICCSC believes momentum can be built from international demand. “Countries like Singapore want to store their emissions, but they don’t have the land. Indonesia does, and we are open for business,” she admitted.
ICCSC is also actively raising awareness and building public engagement to support the development of this emerging industry. It invites academia, industry, and civil society stakeholders to join the decarbonization movement.
“CCS is not just a climate solution. It is Indonesia’s long-term industrial strategy. We are just getting started,” she conveyed.
