Ecobiz.asia — Indonesia’s House of Representatives (DPR RI) is targeting the inclusion of provisions on carbon capture and storage (CCS) and carbon capture, utilization and storage (CCUS) in the revised Oil and Gas Law, which is currently being deliberated with the government. Deputy Speaker of the People’s Consultative Assembly (MPR) Eddy Soeparno said regulations governing CCS are needed to provide a stronger legal foundation for the development of carbon capture and storage technology in Indonesia.
“CCS is one of the efforts to achieve decarbonization by capturing carbon emissions and storing them in storage formations, of which Indonesia has a very large volume,” Eddy said on the sidelines of the 4th International & Indonesia CCS Forum 2026 in Jakarta on Wednesday (Aug. 26).
He said CCS development is important amid the government’s efforts to boost economic growth to 8% and strengthen national energy security. At the same time, the decarbonization agenda must remain an integral part of Indonesia’s economic and energy development strategy.
Eddy said the DPR is currently deliberating the revision of the Oil and Gas Law, which will not only cover CCS but also regulate upstream and downstream oil and gas activities, which he said have developed significantly and require a new legal framework. “This will be a positive development because the CCS potential we currently have will have a legal umbrella and regulations under the new Oil and Gas Law,” he said.
He added that the bill has passed the initial stage at a plenary session and will subsequently be discussed directly with the government. The DPR, he said, hopes to complete the deliberations as soon as possible, with a target of finalizing the new Oil and Gas Law before the end of 2026. “We are trying to complete it as quickly as possible. Hopefully, it can be completed within the next few months. All members and factions of Commission XII of the DPR want this to be completed as soon as possible. Hopefully, before the end of this year,” he said.
CCS to Become Part of Upstream Oil and Gas Activities
Eddie further explained that under the proposed framework, CCS would be positioned as part of upstream oil and gas activities, particularly through the utilization of depleted reservoirs to store captured CO2. The regulatory framework would also provide room for the utilization of captured carbon under the CCUS concept.
“CCS is one of the efforts to conduct upstream oil and gas activities by utilizing depleted reservoirs to store CO2, which can subsequently also be utilized under CCUS,” he said. According to Eddy, CCS and CCUS are highly relevant to the new Oil and Gas Law because the future regulatory framework is expected to place greater emphasis on sustainability.
“The future Oil and Gas Law will emphasize sustainability, which is one of the key features for developing the economy going forward,” he said.
CCS Emerging as Investment Requirement
Eddy also said CCS will become increasingly important for contractors of cooperation contracts (KKKS) seeking to develop upstream oil and gas projects in Indonesia.
For some KKKS, he said, having CCS capabilities has already become an important consideration for their headquarters before approving new investments.
“CCS is usually an option. Many KKKS need to have a CCS feature in order to invest. Their headquarters will only approve the investment if they have it,” he said.
Therefore, CCS is no longer merely an additional component of upstream oil and gas activities but is increasingly becoming part of investment requirements to ensure that oil and gas operations are carried out sustainably.
“CCS is one of the requirements for them to be able to conduct sustainable upstream oil and gas activities,” Eddy said.***
