The Structural Factors in Advancing CCS/CCUS Technology in Indonesia: A Comprehensive Analysis

Abstract

Indonesia is currently committed to the global initiative aimed at reducing greenhouse gas emissions, with a target of achieving Net Zero Emissions (NZE) by 2060. The reduction is being pursued through the application of CCS and CCUS technologies. In CCUS, CO2 is utilized to enhance oil and gas production through Enhanced Oil Recovery (EOR) or Enhanced Gas Recovery (EGR) methods. In contrast, in CCS, CO2 is captured, transported, and securely stored in geological formations. At the same time, a consistent and affordable energy supply is required to support the achievement of NZE while maintaining economic growth. Ambitious oil and gas production targets are being set by the government to safeguard economic stability. Therefore, CCS/CCUS technologies are considered one of the most viable technical solutions to balance environmental needs with economic conditions. However, the implementation and commercialization of CCS/CCUS in Indonesia still face significant challenges. Several structural factors influencing CCS/CCUS policy implementation are identified in this study. Through structural modeling, CCS/CCUS variables with significant driving power and dependency power are being identified. The final modeling results show that the availability of storage capacity information and technological readiness primarily determine the acceleration of CCS/CCUS implementation. Based on these findings, it is recommended that appropriate policies using a risk-managed approach be adopted by the Indonesian government in the development of CCS/CCUS.