Indonesia Holds 577-Gigaton Carbon Storage Potential, But Still Treats It as Waste
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JAKARTA, Investortrust.id — Indonesia holds an enormous yet underutilized potential for carbon storage—reaching 577.6 gigatons—but the government still classifies carbon as waste instead of a valuable resource, a top official said on Wednesday.
Deputy for Investment Promotion at the Ministry of Investment/Indonesia Investment Coordinating Board (BKPM), Nurul Ichwan, said that the country’s carbon storage capacity spans approximately 572.77 gigatons in saline aquifers and another 4.85 gigatons in depleted oil and gas reservoirs.
Speaking at a Focus Group Discussion (FGD) hosted by Investortrust under the theme “Coal and National Energy Sovereignty: Bridging Economic Realities and Climate Commitments” in Jakarta, Nurul urged a shift in regulatory and investment frameworks to reflect the economic value of carbon capture.
“We still treat carbon as waste, instead of as a commodity or a resource. That mindset is embedded in our regulatory DNA,” Nurul said. “We are proposing to reclassify carbon so that it is no longer treated as a waste product but as a commodity with downstream economic value. If that happens, we can unlock our carbon storage potential of no less than 577 gigatons.”
The move could position Indonesia as a major player in global decarbonization efforts, offering solutions to multinational companies seeking credible carbon offset strategies. According to Nurul, over 550 global firms have pledged to achieve net-zero emissions, requiring mechanisms such as carbon elimination, regular reporting, and credible offset programs.
He emphasized that Indonesia’s rich ecosystems—such as peatlands and mangrove forests—could support nature-based solutions that align with international offset standards.
“This opens the door for Indonesia to offer carbon offset resources to high-emitting industries worldwide,” he added. “Whether it’s through peatland rehabilitation, mangrove restoration, or other environmental initiatives, we can position our projects as credible offset options.”
The remarks highlight the strategic importance of carbon capture and storage (CCS) infrastructure in Indonesia’s climate agenda and its potential to attract green investment, especially in tandem with mineral downstreaming projects such as nickel processing.