Deputy for Investment Planning at the Ministry of Investment and Downstreaming/BKPM Ichsan Zulkarnaen said CCS could help industries cut their carbon footprint while maintaining competitiveness in global markets.
"CCS is strategic because it supports decarbonization in sectors where emissions are difficult to reduce, such as oil and gas, cement, fertilizer, petrochemicals, refineries and power generation, while also increasing the investment appeal of industries," Ichsan said at the International and Indonesia CCS Forum 2026 in Jakarta on Wednesday.
CCS can capture more than 90 percent of carbon emissions before they are released into the atmosphere, helping industries prepare for potential carbon costs and carbon taxes in the future, he said.
Indonesia has strong potential for CCS development because of its large industrial base and abundant carbon storage resources. The country has an estimated CO2 storage potential of more than 577.62 gigatons across several regions.
It also offers both onshore and offshore storage options and is strategically located along Asian trade routes, Ichsan said.
The government is developing a policy framework to provide greater certainty for CCS investment. The 2025 update to the Indonesian Standard Industrial Classification (KBLI) includes activities across the CCS value chain.
BKPM has also mapped potential CCS clusters based on the proximity of industrial emission sources to carbon storage sites.
Four clusters have been identified. South Sumatra has about 3 million tons per annum (mtpa) of potential emissions and 584 million tons of identified storage capacity.
West Java has about 13 million mtpa of emissions and 612 million tons of storage capacity, while East Java has about 9 million mtpa of emissions and 345 million tons of storage potential.
Kalimantan has about 15 million mtpa of emissions and 1.945 billion tons of storage capacity, the largest potential among the four clusters.
Related news: Indonesia eyes CCS for emissions cuts, investment
Related news: Indonesia sees opportunity to market carbon storage services
Translator: Ahmad Muzdaffar F, Martha Herlinawati Simanjuntak
Editor: Primayanti
Copyright © ANTARA 2026
