Greenwise has officially published its policy research titled “Policy and Regulatory Readiness of Industrial Carbon Capture and Storage (CCS) in Indonesia” in the Journal of Infrastructure Policy and Management (JIPM), Vol. 9, No. 1 (2026), pp. 35–46.
The paper examines the extent to which Indonesia’s policy and regulatory framework is prepared to support the implementation of industrial Carbon Capture and Storage (CCS), particularly within the context of Environmental, Social, and Governance (ESG).
Why CCS Regulatory Readiness Matters for Indonesia
Carbon Capture and Storage (CCS) is increasingly recognized as a potential decarbonization solution for hard-to-abate industries such as cement, steel, oil refining, and petrochemicals. Indonesia has significant carbon storage potential and a strategic interest in advancing industrial decarbonization, particularly following the issuance of Peraturan Presiden No. 14 Tahun 2024, which provides the initial legal framework for CCS activities.
However, the existence of a framework regulation alone does not necessarily mean that CCS implementation is institutionally ready. Key questions remain as to whether carbon capture, transportation, storage, environmental permitting, shipping, investment governance, and long-term monitoring can be regulated in a coherent and integrated manner within Indonesia’s legal and regulatory system.
Findings: How Ready Is Indonesia for CCS?
Indonesia’s readiness for industrial CCS is partial rather than absent. A legal foundation has been established through Perpres No. 14 Tahun 2024, but implementation remains fragmented because responsibilities are distributed across multiple sectoral regulatory frameworks: the oil and gas sector for subsurface activities, the environmental framework for environmental approvals, the Online Single Submission (OSS) system for business licensing, maritime law for shipping activities, and international treaty procedures for cross-border elements.
One of the most significant findings is the lack of a clear framework governing long-term and post-closure liability, which poses a major risk to governance credibility and investor confidence. Institutional coordination also remains largely ad hoc rather than being supported by a formal inter-ministerial mechanism, creating the potential for inconsistent interpretations, duplication of documentation, and the absence of a shared framework linking technical compliance with ESG objectives. Overall, these regulatory gaps have direct implications for all three ESG pillars: incomplete MRV frameworks weaken environmental performance, limited public consultation undermines social legitimacy, and ambiguity surrounding long-term obligations reduces governance accountability and the bankability of CCS projects.
Greenwise recommends establishing an inter-ministerial CCS coordination body involving the Ministry of Energy and Mineral Resources (ESDM), the Ministry of Environment (KLHK), the Ministry of Industry, the Ministry of Finance, and the Financial Services Authority (OJK). The study also recommends developing a cross-ministerial CCS–ESG roadmap and issuing more detailed implementing regulations on long-term liability and post-closure financial assurance. In addition, permitting reforms should focus on improving transparency and integration through a unified permitting framework, while social safeguards should be embedded as a core component of CCS readiness from the outset rather than being treated as a procedural afterthought.
Contributing to Indonesia’s Climate Policy Discourse
This research demonstrates that CCS regulatory readiness is not merely about the existence of legislation, but about achieving coherence, coordination, and accountability across sectors. Its publication in the Journal of Infrastructure Policy and Management (JIPM) reflects Greenwise’s commitment to producing rigorous, evidence-based policy research that supports policymakers, industry stakeholders, and investors.
Interested in reading the full paper? Access the full article through the official DOI: https://doi.org/10.35166/jipm.v9i1.175
Looking to collaborate on policy research or seek support for ESG implementation and decarbonization strategies within your organization? Contact Greenwise to discuss your organization’s needs.
