Presidential Regulation of The Republic of Indonesia No.14 of 2024 on Carbon Capture and Storage

M. Hadyaka Wiradewa & Achmad Fadhlullah | February 25, 2024 | Regulation Summaries

In line with the goal of Nationally Determined Contribution (“NDC”) and to realize Net Zero Emissions (“NZE”) by 2060, the Indonesian Government issued Presidential Regulation No. 14 of 2024 on Carbon Capture and Storage (“PR CCS”), which reportedly become the first of its kind in Indonesia (refer to US - Asia Business Council). Hereby are a few notable updates on PR CCS:

CCS Implementation:

The implementation of CCS is perfomed in Work Areas based on a Cooperation Contract (i.e., a Product Saring Contract / “PSC”, Gross Split Contract / “GSC” or other Cooperation Contracts) between the Contractor (Business Entity or Permanent Establishment) and the Government (The Special Working Unit for Upstream Oil and Gas Business Activities / “SKK Migas” or the Aceh Oil and Gas Management Agency / “BPMA”). In connection with the above, PR CCS requires a Contractor to submit a CCS implementation plan, including Carbon Storage Capacity license, through SKK Migas or BPMA. On the other side, the implementation of CCS is performed in Storage CO2 Areas based on the exploration permit and carbon storage operation permit, which issued by Minister of Energy and Mineral Resources / “MEMR”.

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