Indonesia Introduces CCs And CCUS Regulations

The Indonesian Minister of Energy and Mineral Resources ("MEMR") has issued MEMR Regulation No. 2 of 2023 on the Implementation of Carbon Capture and Storage ("CCS") and Carbon Capture, Utilization, and Storage ("CCUS") in Upstream Oil and Gas Business Activities ("MEMR Reg 2/2023").

MEMR Reg 2/2023 supports Indonesia's commitment to achieve carbon neutrality by 2060 by allowing upstream oil and natural gas contractors to store, utilize, and/or monetize carbon emissions. CCS and CCUS are similar but have distinct characteristics. CCS reduces carbon emissions by capturing, compressing, and permanently injecting the captured carbon into a specific location. In contrast, CCUS would use the captured carbon to create products such as plastics, concrete, or biofuel.