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Roadmap for Energy Transition in Indonesia

​The government has drawn up a roadmap for the energy transition to help Indonesia achieve its carbon-neutral target by 2060. The government has prepared four strategies to reduce carbon emissions: the application of Carbon Capture, Usage, and Storage (CCUS) technology, routine flare restrictions, optimization of natural gas utilization for households and transportation, and reduction of methane emissions.

 The government plans to implement CCUS (Carbon Capture, Utilization, and Storage) for increasing oil and gas production and store potential emissions of about 48 million carbon dioxide (equivalent). There are three fields that have conducted trials on the implementation of CCUS: Gundih, Sukowati, and Tangguh. The government is targeting to start CCUS at Gundih in 2024 or 2025 to prevent the release of an estimated three million tons of stored carbon in 10 years. Meanwhile, Sukowati, as the prototype, will be started next year and completed in 2025, he said. It is targeted to reach its full scale in 2030, with the aim of preventing the release of an estimated 15 million tons of carbon dioxide in 25 years. Tangguh field will apply CCUS in 2026, with an estimated 30 million tons of carbon dioxide in 10 years.

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 The second strategy is restricting the use of flares, as stipulated in the ESDM Ministerial Regulation No.17 of 2021 concerning the management of flare gas in the oil and gas industry. As per the rule, there is an obligation to make a plan for the utilization of flare gas in new refineries, cooperation in flare gas management, comprehensive reporting concepts, and the implementation of sanctions and awards, he said. The third strategy is to optimize the utilization of natural gas for households and transportation, he said.

The conversion of kerosene to LPG is estimated to reduce 15.39 million tons of carbon d