Critics have criticized Presidential Regulation No. 14/2024 on the legal framework for Carbon Capture Storage (CCS) or Carbon Capture, Utilization, and Storage (CCUS) technologies in Indonesia, accusing it of favoring the oil and gas industry rather than addressing climate change concerns.

"If we read it carefully, Presidential Regulation No. 14/2024 emphasizes more on oil and gas," Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR) said on Thursday, February 1, 2024.

He highlighted that the regulation provides legal support for CCS/CCUS activities in Indonesia, allowing the oil and gas industry to continue operations and meet the government's set targets.

Fabby expressed the view that the regulation does not position CCS as an effective solution but rather reflects a pragmatic approach.

He agreed with the perspective that CCS might be considered a false solution to the energy transition due to various factors, such as the risk of CO2 leakage, high initial investments, and questionable economic viability.

"Presidential Regulation 14/2024 does not claim that CCS is a viable solution but leans more towards pragmatism," explained Fabby.

He pointed out that the Upstream Oil and Gas Regulatory Task Force (SKK Migas) is responsible for managing CCS/CCUS activities, particularly related to storing carbon in depleted oil wells.

Depleted reservoirs are oil and gas reservoirs that have experienced decreased pressure or hydrocarbon reserves due to production, making them economically unviable with current technology.

The Ministry of Energy and Mineral Resources (ESDM) has set ambitious targets for oil and gas production, aiming for 1 million barrels of oil per day (BOPD) and 12 billion standard cubic feet per day (BSCFD) of gas by 2030.

"In the energy transition period, especially with natural gas, there will still be a crucial role before reaching 100 percent electricity generation from Renewable Energy (EBT)," read a statement by the Directorate General of Oil and Gas on February 1, 2024.

The ministry envisions 15 CCS/CCUS projects operational by 2030, supporting national oil and gas production targets.

According to the Gas Global Report 2022 by the International Gas Union (IGU), various locations worldwide can serve as CO2 emission storage sites, with a total potential capacity of around 22,900 gigatons. The United States holds the largest storage potential with 12,177 gigatons, according to the report.