Indonesia CCS Investment Opportunities Overview
The Indonesia CCS investment landscape is rapidly expanding as the country positions itself as a regional hub for Carbon Capture and Storage (CCS) and Carbon Capture, Utilisation, and Storage (CCUS). Supported by extensive geological formations, Indonesia possesses some of the largest carbon storage capacity in Asia, enabling the government to commit to long-term carbon mitigation strategies aligned with global climate agreements. CCS/CCUS technologies enable high-emission industries—both domestic and foreign—to capture and store CO₂, either integrated with power generation or injected underground. The government estimates that CCS/CCUS could contribute USD 47 billion to Indonesia’s GDP and create more than 533,000 jobs by 2050.
Indonesia currently hosts around 15 CCS/CCUS pilot and pre-commercial projects targeted for completion before 2030. PLN’s Suralaya coal-fired power plant in Banten serves as one of the key implementation sites, while international partners such as JERA, JIC, ENEOS, and Korea’s KEXIM have collaborated on CCS technologies across coal, gas, and industrial facilities. Early assessments show that Indonesia possesses over 376 gigawatts of geological capacity suitable for CCS implementation, with long-term goals of achieving 2 gigawatts by 2040 and 19 gigawatts by 2060.
Cross-Border CCS/CCUS Potential and Legal Framework
Indonesia is preparing to open its CCS/CCUS infrastructure for cross-border services, allowing foreign countries to transport captured CO₂ to Indonesia for long-term storage. This development positions Indonesia as a strategic carbon storage destination for industrialized economies seeking cost-effective decarbonization solutions.
Regulatory support for CCS/CCUS is strengthened under OJK Regulation No. 14/2024, which establishes legal clarity for CCS activities and derivative instruments used for financing carbon storage. The government is also accelerating legislation for CCS-based financial tools, enabling more efficient capital flow and optimizing project bankability.
This regulatory ecosystem reflects Indonesia’s ambition to utilize CCS/CCUS as a major component of its climate transition strategy while supporting foreign investors seeking compliant, scalable, and technologically resilient decarbonization pathways.
Expanding Investment in Indonesia’s Sharia Sector
Alongside CCS development, Indonesia continues to strengthen its position in the global Sharia economic sector, supported by its membership in the Organisation of Islamic Cooperation (OIC) and a population of more than 245 million Muslims—the world’s largest Muslim-majority nation. Indonesia ranks among the top five Islamic economies globally, with Sharia-related investments reaching USD 25.9 billion in 2022/2023, especially in halal finance, cosmetics, pharmaceuticals, food, medical services, media, and tourism.
Indonesia aims to become a global Sharia hub under the National Committee for Sharia Economy and Finance (KNEKS), established to accelerate the country’s Islamic economic ecosystem. Conventional Commercial Banks are also working to separate their Sharia business units into full-fledged Sharia banks, reinforcing sector-level governance.
On the regulatory side, the Financial Services Authority (OJK) has issued Regulation No. 12/2023 on Sharia Business Units, strengthening compliance, consumer protection, and investor confidence. Indonesia’s halal food sector ranks first globally, while its modest fashion sector ranks second—highlighting significant room for foreign investment.
Conclusion
With strong policy frameworks and expanding technological capacity, the Indonesia CCS investment landscape offers major opportunities across CCS/CCUS development, cross-border storage, and Sharia-aligned financial markets—positioning Indonesia as a leading destination for climate and Islamic economy investment.