Jakarta—PT Pertamina Hulu Energi (PHE) confirmed the continuation of the Carbon Capture and Storage (CCS) project in the Sunda Asri area in a press statement on Tuesday, March 11, as part of efforts to decarbonise the national energy industry. The project enters a crucial stage in 2025, with plans to drill an appraisal well to ensure the reservoir’s readiness to store carbon dioxide (CO2).
“For this year, we have allocated an investment of USD 50 million to drill an appraisal, which is the first step of the Sunda Asri CCS project,” said PHE Director of Finance and Investment Dannif Danusaputro.
In its development, the Sunda Asri CCS project is not only a domestic decarbonisation solution but also has the potential to serve the carbon storage needs of other countries. Singapore, which is looking for a cross-border carbon storage solution, is cited as one of the main potential customers. Indonesia and Singapore signed a Letter of Intent (LoI) on 9 February 2024 that opens up opportunities for cooperation in managing carbon emissions with cross-border CCS mechanisms.
In the agreement, both countries affirmed their commitment to developing CCS as a key strategy for reducing greenhouse gas emissions and supporting industrial sustainability. The Indonesian government has also issued Presidential Regulation No. 14 Year 2024 as a legal umbrella for implementing CCS activities, including the provision of carbon storage capacity for international partners.
Apart from Singapore, the CCS project has also attracted the interest of global energy companies. Pertamina has signed a Framework Agreement for CCS Hub Development with ExxonMobil Indonesia and Korea National Oil Corporation (KNOC). ExxonMobil will be the technology provider, while KNOC will be the carbon storage facility’s user. In its capacity as a state-owned enterprise, Pertamina is entrusted with managing the carbon storage reservoir that will operate at Sunda Asri.
With a projected Final Investment Decision (FID) targeted for completion in 2026, the success of the Sunda Asri CCS project will depend heavily on regulatory support and the completion of derivative rules being drafted by the government. PHE hopes that related policies can be issued soon so that the investment and international cooperation that has been established can be realised on target.
“We are optimistic that this project can run as planned with the support of clear regulations and strategic cooperation with international partners,” said Dannif.
According to him, the Sunda Asri CCS project is expected to become a carbon emission management model that not only reduces the environmental impact of the energy industry but also provides economic benefits through cross-country cooperation in carbon storage. (Hartatik)
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