The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) is drafting a licensing framework for carbon capture and storage (CCS) service projects in Indonesia, marking a significant step toward the country’s green investment goals.

“From BKPM’s side, our main task is to prepare the necessary permits. The Ministry of Energy and Mineral Resources (ESDM) is currently designing the designated CCS zones, which will later be auctioned and developed. We will handle all related licensing aspects,” BKPM Deputy for Investment Promotion, Nurul Ichwan, said in Jakarta on Tuesday, October 7, 2025 as quoted by Antara.

He added that the implementation of these regulations will be integrated into the Online Single Submission (OSS) system under the Ministry of Investment.

“Essentially, our role is to support from the licensing side,” Nurul emphasized.

Meanwhile, Deputy Minister for National Development Planning and Deputy Head of the National Development Planning Board (Bappenas), Febrian Alphyanto Ruddyard, said Indonesia has strong potential to market carbon storage services internationally, thanks to its vast storage capacity and competitive costs.

“Indonesia has the opportunity to offer carbon storage services abroad and make it a strategic sector,” he said.

To realize this potential, Febrian highlighted the need to build a robust ecosystem, including regulatory frameworks that attract private investment in CCS technology. Such investments, he added, will accelerate Indonesia’s energy transition and support the country’s Net Zero Emission (NZE) target. Indonesia is also set to cooperate with the European Union to strengthen national regulations and make the sector more appealing to investors.

Director of Indonesia and Regional CCS Strategic Initiative at the Indonesia CCS Center, Diofanny Swandrina Putri, noted that Indonesia has a carbon storage potential ranging from 80 to 600 gigatons.

“A starting capacity of 600 gigatons is already very significant,” she said during a discussion on the integration of Carbon Capture and Storage and Carbon Capture, Utilization and Storage (CCS/CCUS) in Jakarta on Tuesday, October 8, 2025.

According to Diofanny, optimizing the use of CCS and CCUS technologies could reduce Indonesia’s carbon emissions by up to 17 percent by 2060, in combination with other emission-reduction initiatives.