Jakarta – To achieve the net zero emissions (NZE) target by 2060, it is not enough to rely solely on new and renewable energy (NRE), according to Hendra Halim, Infographic Lead from Indonesia Petroleum Association (IPA).
“Two gigatons of CO2 must be eliminated by 2060. EBT alone is not enough. It must be assisted by CCS (carbon capture and storage) and bioenergy, which are being encouraged by the government,” he said in an official statement during a media briefing on Thursday, June 27.
Indonesia must also significantly reduce CO2 emissions from various sectors, including energy. Halim says one reliable solution is implementing CCS technology, and collaboration between the government and the energy industry is the key to realising this technology in Indonesia.
Halim explained that without the CCS program, Indonesia would be burdened with additional costs of up to Rp1 trillion due to the emissions produced. According to him, Indonesia has great potential in terms of carbon storage capacity, with the latest capacity reaching 700 giga tons.
“So now we need support from the government. CO2 cross-border agreements that need other countries, carbon pricing not only in Indonesia but outside as well,” he added.
Challenges and opportunities in CCS implementation
IPA’s Deputy Chief Infographic Sub-committee, Rina Rudd, acknowledged that while the government has taken a good approach, more push is needed to implement CCS.
“Need fiscal, revenue sharing, more attractive tax. Legal certainty. There is a lot of homework, clarity of terms in the contract,” said Rudd, who also serves as General Manager of Husky Liman Limited.
She added that increased production needs to be pursued with high energy demand, even though environmental demands incur additional costs. This can affect economics and investment interest.
Meanwhile, Marjolijn Wajong, Executive Director of IPA, said that energy needs will increase significantly to achieve a golden Indonesia. Based on data from the National Energy Council (DEN), gas consumption is projected to quadruple, while oil will double.
“The increase in renewable energy is also large. Towards a golden Indonesia requires a lot of energy. Oil and gas is needed more than today,” she said. (Hartatik)
