Indonesia Presidential Regulation No. 14/2024 (CCS Framework)

Policy Overview

Enacted on January 30, 2024, Indonesia’s Presidential Regulation No. 14 of 2024 (PR 14/2024) provides the first comprehensive legal architecture for Carbon Capture and Storage (CCS) in Southeast Asia. Designed to turn Indonesia into a premier carbon management hub, the regulation establishes two primary operating models: CCS within existing upstream Oil & Gas Working Areas (conducted by PSC contractors via contract amendments) and independent Carbon Storage Permit Areas (WIPK) for specialized entities.

The decree’s most significant breakthrough is its Cross-border Storage provisions, allowing CCS operators to allocate up to 30% of their storage capacity for CO2 captured outside Indonesia. This is contingent on bilateral agreements and local investment by the foreign entities. PR 14/2024 also formalizes government royalties, tax and non-tax incentives, and a multi-tiered approval process led by the Ministry of Energy and Mineral Resources (MEMR) and SKK Migas, providing the legal certainty required for major projects like the Tangguh hub to proceed.