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Ministry of Industry Drafts Regulation on Carbon Storage

1 min read
|
Mar 27, 2025
|
Indonesia

Impact Scale

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Medium

Affected Sectors

Energy

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The Ministry of Industry (" Kemenperin ") is currently drafting regulations related to carbon capture and utilization without storage (Carbon Capture Utilization – " CCU "). The Head of Green Industry Center of the Ministry of Industry, Apit Pria Nugraha, emphasized that carbon capture technology is very expensive, both for industries that invest on their own and those that use third-party services.

"We are also in the process of drafting regulations for carbon capture and utilization, or CCU," said Apit

According to him, adding the cost of carbon storage—such as paying storage fees to storage companies—is not a reasonable solution for the industry. As an alternative, captured carbon can be processed into value-added products, such as ice soda, baking soda, or even methane gas. These products, Apit explained, can be used as raw materials for other industries, making them more beneficial than simply storing the carbon underground.

“The carbon has already been captured, then you have to pay. Then the storage is given to Pertamina, and you have to pay again. Storage fees for the industry don’t make sense to us,” he said.

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