Carbon Capture and Storage (CCS) or carbon capture and storage\ntechnology is emerging as one of the strategic solutions that not only\ncontributes to emission reductions but also has the potential to open\nnew business opportunities and drive national economic growth.<\/p>\n
At the Katadata ESG Forum held on Monday (6\/4\/2026), the Executive\nDirector of the Indonesia Carbon Capture and Storage Center (ICCSC),\nBelladona Maulianda, emphasised that CCS can serve as a strategic bridge\nthat transforms environmental obligations into new revenue streams. This\ntechnology is assessed to provide significant contributions to the\nnational economy.<\/p>\n
Based on ICCSC\u2019s internal calculations, the implementation of CCS in\nIndonesia has the potential to contribute 0.84% growth to Gross Domestic\nProduct (GDP) by 2030. This projection is supported by pre-project\ninvestment commitments worth US$43 billion (equivalent to Rp732\ntrillion) spread across 19 strategic projects in various regions.<\/p>\n
\u201cCCS is no longer just an effort to fulfil the environmental pillar,\nbut also creates a multiplier effect. In addition to driving GDP growth,\nthis sector is predicted to absorb around 224,000 workers annually,\u201d\nsaid Belladona.<\/p>\n
One of the advantages of CCS integration is its ability to encourage\nthe birth of low-carbon based downstream industries, such as low carbon\nLNG, blue methanol, blue ammonia, and blue hydrogen.<\/p>\n
According to her, these products have high appeal in the global\nmarket. Their more environmentally friendly status allows \u201cblue\u201d\nproducts to be sold at a premium price.<\/p>\n
\u201cThe margins are larger because they can be sold at a premium price,\nwhile also fulfilling environmental obligations and supporting the\ngovernment\u2019s planned industrial downstreamisation targets,\u201d she\nadded.<\/p>\n
Indonesia is also considered to have a comparative advantage to\nbecome a major CCS player in Southeast Asia. With underground storage\ncapacity potential of around 600 gigatons, Indonesia has the opportunity\nto become a carbon storage hub for countries with high emissions but\nlimited land, such as Singapore, South Korea, and Japan.<\/p>\n
From a regulatory perspective, Indonesia is relatively more advanced\nwith the issuance of Presidential Regulation No.\u00a014 of 2024, which\nregulates cross-border CCS. The business schemes are also diverse,\nranging from transportation and storage fees (storage fee) to\nopportunities as an aggregator for large industrial companies.<\/p>\n
Belladona likened this dynamic to a carrot and stick strategy. When\nother countries begin implementing high carbon taxes (stick), Indonesia\noffers economically valuable carbon storage solutions (carrot).<\/p>\n
Currently, Indonesia is developing around 15 CCS\/CCUS projects\ntargeted to operate before 2030. These projects are mostly in the oil\nand gas sector, from Sumatra to Papua, as well as heavy industries, as\npart of efforts to achieve net zero emission targets. The government has\nalso issued Ministry of Energy and Mineral Resources Regulation No.\u00a02 of\n2023 to regulate operations while attracting investments.<\/p>\n
Although the prospects are significant, Belladona reminded that CCS\nis a high risk, high return industry. Therefore, the role of the\nfinancial sector is crucial, particularly in designing optimal financing\nschemes and insurance support as an enabler.<\/p>\n
In addition, transparency and accountability in emission reporting\nare key factors so that CCS projects can produce carbon credits with\nhigh economic value.<\/p>\n
\u201cWe need collaboration from three stakeholders: the government\nthrough regulations, industry players through business models, and\nfinancial institutions to ensure this investment provides optimal\nreturns,\u201d she concluded.<\/p>\n
With strong regulatory support, investment, and collaboration, CCS\nhas the potential to become one of the new engines of economic growth as\nwell as an important instrument in achieving net zero emission targets\nwithout sacrificing Indonesia\u2019s global competitiveness.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/prospects-of-ccs-for-indonesia-potential-to-boost-gdp-by-0-84-and-become-a-regional-carbon-hub-1775609623", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }