PT Pertamina New & Renewable Energi (Pertamina NRE), a subsidiary of State energy company PT Pertamina, seeks regulations that will strengthen and encourage the oil and gas industry by accelerating the implementation of carbon capture and storage/carbon capture,utilization and storage (CCS/CCUS) technology in Indonesia.
Bayu Prabowo, Senior Expert Technology & Engineering at Pertamine NRE, said the government also needs to provide incentives for oil and gas industry players who have started implementing CCS/CCUS technology.
“For the domestic industry itself, there is no pressure or incentive for the domestic industry,” Bayu said, on Thursday, November 28, 2024.
He added that incentive is necessary because this business does not create products that can be used or felt directly by the people.
He also suggested that the public must be given a more comprehensive and in-depth understanding so that they can understand the usefulness of this technology to achieve net zero emissions (NZE).
“Because if there are no real incentives or pressure from the government, this will be difficult to move,” he said.
Bayu said that Indonesia has extraordinary potential to become a carbon storage center in the Asian region. Currently, Indonesia has a very large CO2 reservoir, with a capacity of between 400-600 gigatons of CO2.
He said this potential could be a long-term solution in reducing global carbon emissions. Indonesia could utilize this storage capacity for hundreds of years.
“This is a great opportunity for industries around Indonesia to utilize the wealth of this reservoir and turn it into a profitable business for the Indonesian people,” he added.
Indonesia needs to develop a carbon market to maximize the potential of CCS/CCUS. Currently it is still limited in Indonesia. He hopes that the relaxation of restrictions on the sale and purchase of carbon credits will be the key to developing the CCS ecosystem in Indonesia.
Indonesia has the potential to enter the global market and obtain higher value. Currently the international market already appreciates the reduction of carbon emissions.
“If we can open the international market and sell carbon to countries that already appreciate emission reductions with good economic value, this could be a good first step for the CCS ecosystem in Indonesia,” Bayu said.
