Regulation of the Minister of Industry Will Regulate Industrial CCU

The Ministry of Industry (“ Kemenperin ”) is preparing a Carbon Capture and Utilization (“ CCU ”) project to absorb carbon emissions from industrial processes. This project utilizes carbon to produce economically valuable products, such as dry ice, baking soda, or even methane as raw material for various industries.

The Executive Director of the Indonesia Carbon Capture and Storage Center (“ ICCSC ”), Belladonna Maulianda, said that together with Kemenperin, they are preparing a regulatory framework for the implementation of CCU for the industry. “We are assisting Kemenperin in preparing a ministerial regulation for CCU. It will take the form of a Regulation of the Minister of Industry,” said Belladonna.

According to her, the drafting of the regulation is intended to provide legal certainty for industrial carbon. In addition to the regulation, the funding concept also remains a challenge. Belladonna stated that a scheme is currently being prepared to support the bankability of this project.