Jakarta – The Ministry of Energy and Mineral Resources (EMR) and the Norwegian Ministry of Energy have included the issue of Carbon Capture Storage (CCS) as one of the points in the revision of the latest Oil and Gas Law. This was recently discussed at the 10th Indonesia-Norway Bilateral Energy Consultations (INBEC) Meeting in Jakarta.
Indonesia hopes to learn from Norway, a country at the forefront of CCS implementation in the oil and gas industry. EMR’s Director of Oil and Gas Program Development, Mirza Mahendra, stated that the government is developing the business and issuing regulations and licenses for CCS businesses.
“Norway has been able to collaborate R&D, the government’s active role, and the business sector’s enthusiasm. Indonesia wants to gain experience on CCS from Norway,” Mirza said in an official statement on Wednesday, July 3.
Efforts to implement CCS and Carbon Capture Utilization and Storage (CCUS) in Indonesia’s oil and gas industry have the potential to delay the revision of the Oil and Gas Law, which has long been awaited by business actors to obtain legal certainty for investment.
PT Pertamina (Persero), a State-Owned Enterprise involved in CCS/CCUS projects, also faces various challenges. The government encouraged Pertamina to explore further discussions with the Norwegian delegation on the commercial aspects of CCS/CCUS.
Mirza added that Norway’s expertise and technology in offshore oil and gas development can be a lesson for Indonesia.
Indonesia has not had legal certainty in the upstream oil and gas industry for over 10 years because the Oil and Gas Law No. 22 of 2001 is very weak. After all, many articles have been annulled by the Constitutional Court. The revision of the Oil and Gas Law is one of the mandates of the Constitutional Court’s decision, which has not yet been realised. (Hartatik)
