Publications

With the target of Net Zero Emission (NZE) by the year 2060, the Indonesian government supports the global agenda of reducing Greenhouse Gas (GHG) emissions. One of the technologies to reduce GHG is the deployment of Carbon Capture Storage/Carbon Capture Utilization Storage (CCS/CCUS). CCS is a technology to capture, transport and store CO2 in a geological formation. CCUS is similar to CCS except that the injected CO2 is used to increase petroleum production from a geological formation. However, some of the injected CO2 comes out with the produced petroleum, so CCUS is treated differently than CCS. For example, CO2 has been used to increase oil production through Enhanced Oil Recovery (EOR) since the early 1970s, almost exclusively in North America, and this is the most well-known form of CCUS in the oil industry. Besides Indonesia's ambition to meet the NZE by 2060, Indonesia needs affordable and reliable energy supply to have robust domestic economic growth. In support of economic growth, the Indonesian government has set the oil production target in its annual state budget and long-term target to support economic growth. Therefore, the CCS/CCUS technology is the right solution for the government to select to meet the two agendas. Even though there have been desk studies and local pilot projects conducted since the early 2000s, the Indonesian government must establish workable and effective regulations to deploy CCS/CCUS. The regulations should cover all aspects, from detailed technical to economic and technology deployment. Moreover, other challenging aspects in developing the policy to deploy CCS/CCUS in Indonesia, among others, are 1) the upstream fiscal term is under Production Sharing Contract which deals exclusively with mineral oil and gas, not CO2; 2) the regulations on the carbon market have been well established for the energy sector; 3) experts are still doubting on the implementation of the technology in Indonesia; and 4) the economics cf deploying CCS/CCUS still high. This study aims to determine critical factors in designing regulations for deploying CCS/CCUS in Indonesia. Structural models identify factors with the degree of dependency that can influence the decision-maker in formulating a regulation. These factors have been categorized under "factor," and they can accelerate the deployment of CCS/CCUS. Our preliminary finding of this research indicates that technology and storage availability are the key drivers in deploying CCS/CCUS. Ultimately, by identifying essential factors using our model, we hope the study is beneficial to set a workable regulation in deploying CCS/CCUS for Indonesia.