PHE Pushes for Cross-Border CCS Projects in Asia-Pacific
Pertamina Hulu Energi (PHE) is promoting the development of cross-border carbon capture and storage (CCS) technology to support Asia’s decarbonisation targets. At the Japan CCUS Summit 2026 in Tokyo on Monday (19 October 2026), the company highlighted the importance of long-term investment certainty if Indonesia is to become a regional carbon storage hub, Suara reported.
PHE Investment and Business Development Director Dannif Utojo Danusaputro said successful CCS cooperation depended on more than geological storage capacity. Regulatory certainty, institutional coordination, transparent permitting and financial viability were also essential to attract emissions-intensive industries from Japan.
Dannif said investors needed assurances that would support project operations over 20 to 30 years. Such certainty was necessary to manage investment risks and build confidence in cross-border carbon storage.
“For Japanese investors and emissions-intensive industries, trust is built on three main pillars: regulatory certainty to manage long-term risks; clear, coordinated and transparent institutions overseeing permits and cross-border monitoring; and long-term financial viability, or the project’s ability to secure financing,” said Dannif, PHE’s Investment and Business Development Director.
As well as regulatory certainty, PHE needs commitments on carbon dioxide (CO₂) supply and readiness of carbon-capture facilities operated by partner companies. Consistent emissions volumes and long-term commercial contracts are important to developing storage facilities.
“Cross-border CCS projects are not merely commercial transactions for carbon storage; they are long-term strategic partnerships. For a company such as Pertamina, building a CCS hub requires very substantial upfront investment in characterisation studies, well drilling, injection facilities and transport infrastructure. We therefore need certainty on emissions volumes, readiness of capture facilities on the industry side, and long-term cooperation contracts,” Dannif said.
To strengthen investor confidence, Dannif urged project developers to be transparent, build hub-scale infrastructure, improve coordination with the government and establish long-term partnerships. These measures are intended to ensure projects are technically and commercially ready before major investment is committed.
PHE aims to reach a final investment decision (FID) on the Asia-Pacific region’s first commercial cross-border CCS project within the next two to three years. The company also aims to move the project towards the carbon-injection stage.
According to Dannif, a successful pioneering project would demonstrate that carbon dioxide can be captured in one country, safely transported across borders and permanently stored under a reliable regulatory framework. That proof is expected to provide a basis for replicating the model in future projects.
“If this first project successfully proves that CO₂ can be captured in one country, safely transported across national borders and permanently stored under a reliable regulatory framework, the market will move quickly from discussion to replication. Success will validate the regulatory framework, business model, technical solutions and partnership structure,” Dannif said.
Cross-border CCS development is also aligned with the vision of the Asia Zero Emission Community (AZEC). Through this collaboration, Japan could gain a long-term emissions-storage solution, while Indonesia could develop a low-carbon industry that creates economic value.
Dannif stressed that developing a regional CCS hub would require sustained cooperation between companies and the government. PHE said it would continue investing in sustainable operations and upstream oil and gas businesses in line with environmental, social and governance (ESG) principles.
“Together with the government, we are committed to making Indonesia a reliable and trusted regional CCS hub to support Asia’s decarbonisation journey,” Dannif said.