Regulatory Framework on CCS Officially Introduced: Two CCS Schemes Now Available in Mining Working Areas and/or Carbon Storage License Areas

In line with efforts to ultimately achieve its Nationally Determined Contributions (NDC) and Net Zero Emissions target by 2060, Indonesia has massive potential in terms of its ability to host carbon storage, and as such, its potential to attract investment and generate economic value through Carbon Capture and Storage (“ CCS ”) related activities. [1] In order to capitalize on this huge opportunity, the government has issued Regulation of the President No. 14 of 2024 on the Organization of Carbon Capture and Storage Activities (“ Regulation 14/2024 ”), which has been in force since 30 January 2024. [2] However, it should be noted that any previous regulatory frameworks that address the organization of CCS will remain in force, provided that any of the provisions contained therein do not contradict Regulation 14/2024. [3]