Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, says that the Indonesian government is committed with its decarbonization initiative in line with Presidential Regulation No. 14/2024 on Carbon Capture Storage (CCS).
“The government is keeping the momentum by preparing some derivative frameworks including ministerial regulation, carbon injection area led by the Minister of Energy and Mineral Resources,” Luhut said in Jakarta on Wednesday, July 31, 2024.
Investment permit, he said, is arranged by the Minister of Investment, while the implementation of the CCS standard and the technical standard is arranged by the national standardization agencies.
Luhut said the government understands that CCS requires support from many institutions in the country, which is why the Coordinating Minister of Maritime Affairs and Investment will lead the force for the CCS implementation in Indonesia to accelerate the necessary derivative regulation.
“I understand also that throughout my experience in the last 10 years within the government, sometimes one regulation contradicts another regulation,” he cited.
Therefore, Luhut said, the government wants to harmonize the regulation and make it easy for investors to put their money in Indonesia.
“Those, I think, are some of the biggest problems in this country. But right now, with digitization, like e-catalog, all government procurement will be faster,” he said, while citing that over Rp 3,000 trillion (US$ 141 billion) of government procurement right now is channeled through e-catalog.
“So, if you look at this, e-catalog brings efficiency and also encourages the small and medium enterprises,” he added.
In order to reduce corruption and promote efficiency, Luhut said, the government also encourages people’s innovation in Indonesia. Right now, the government is also putting all the minerals through the integrated system of SIMBARA, which is expected to also trigger efficiency and generate revenue for the government in the forms of tax, royalty, and others.
