Carbon capture and storage (“CCS“) is recognised as a viable and effective solution that plays a key role in the effort to curb global warning. The Indonesian Ministry of Energy and Mineral Resources (“MEMR“) has issued MEMR Regulation No. 16 of 2024 on the Organisation of Carbon Storage in CCS Blocks (“Regulation 16“), a significant development in the nation’s efforts to advance CSS. This regulation completes the regulatory framework for CCS operations, which includes both projects within existing production sharing contract blocks and those in designated CCS blocks, also known as Wilayah Izin Penyimpanan Karbon (“CCS Blocks“).
To gain insights into the practical implications of Regulation 16 and the future of CCS in Indonesia, we convened a discussion in January 2025 with representatives from the MEMR and the Indonesia CCS Center, the key architects of Indonesia’s CCS legislation. This meeting brought together stakeholders from the upstream oil and gas industry and the carbon emitting business sectors, both of which are crucial to the development of CCS.
This client alert aims to provide a practical overview of the discussions surrounding Regulation 16 and CCS development. Specifically, it will:
- Summarise the latest discussions on Regulation 16 and the broader development of CCS in Indonesia.
- Highlight key provisions of Regulation 16 that address industry questions.
- Identify any remaining questions or areas requiring further clarification.
For more information, click here to read the full Legal Update.
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