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Indonesia and Singapore forge cross-border carbon capture and storage partnership

Indonesia and Singapore to collaborate on cross-border CCS, aiming to pioneer sustainable solutions and accelerate regional environmental initiatives.



INDONESIA: In a move towards environmental cooperation, Indonesia and Singapore have sealed a deal on cross-border carbon capture and storage (CCS) activities.

The agreement, outlined in a Letter of Intent (LOI), was signed by Keith Tan, Deputy Secretary of Singapore’s Ministry of Trade and Industry, and Jodi Mahardi, Indonesia Deputy of Maritime Sovereignty and Energy at the Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves).

This collaboration on CCS initiatives across borders comes shortly after the Indonesian government enacted Presidential Regulation No. 14 of 2024 concerning the Implementation of Carbon Capture and Storage Activities.

According to a press release from Kemenko Marves on Thursday (15 Feb), the regulation grants access to carbon storage operators to provide 30 per cent international carbon storage capacity.

The LOI emphasizes the significance of CCS as a decarbonization method. Additionally, the implementation of CCS is seen as potentially supporting sustainable industrial activities and creating new economic opportunities.

To execute the agreement effectively, Singapore and Indonesia have established a working group comprising government officials.

This group will collaborate on a legally binding bilateral agreement to enable the transportation and storage of cross-border carbon dioxide between Singapore and Indonesia.

Keith Tan remarked that cross-border carbon capture and storage is an emerging solution in Asia, which can support Singapore’s transition to net zero emissions by 2050.

He noted, “Singapore is the first country to sign an LOI with Indonesia following the announcement of its presidential regulation that includes cross-border CCS.”

He further added that through this collaboration, Singapore and Indonesia are leading the way in accelerating cross-border CCS projects in Southeast Asia.

Meanwhile, Jodi stated that the partnership with Singapore not only enhances Indonesia’s commitment to environmental leadership in the region but also demonstrates Indonesia’s proactive approach to leveraging innovative technology for sustainable growth.

“This initiative positions Indonesia as a key player in the Southeast Asian CCS landscape by introducing inter-country environmental cooperation,” Jodi emphasized.

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