New Implementing Regulation On Carbon Capture Storage Activities In Licensed Areas

The Government of Indonesia ("Government") introduced Presidential Regulation No. 14 of 2024 on Carbon Capture and Storage ("CCS") Activities ("PR 14/2024") at the start of 2024. This regulation provides a legal framework for organizing all CCS-related activities.

Under PR 14/2024, there are two possible schemes for implementing CCS. The first possible scheme is CCS within the framework of an oil and gas production sharing contract ("PSC") by a PSC contractor as part of its petroleum operations under the PSC. The second scheme is CCS performed by a non-PSC contractor outside of oil and gas operations, which requires the business actor to obtain an Exploration Permit and an Operation Permit before initiating carbon injection and storage in a so-called designated Carbon Storage License Area (Wilayah Izin Penyimpanan Karbon or "WIPK").