Indonesia, Singapore Ink LOI On Cross-Border Carbon Capture Storage

Singapore and Indonesia have signed a Letter of Intent (LoI) to collaborate on cross-border carbon capture and storage (CCS).

The agreement was signed by Deputy Secretary (Industry) of the Ministry of Trade and Industry Singapore Keith Tan and Indonesia Deputy Coordinating Minister for Maritime Sovereignty and Energy Jodi Mahardi.

This follows Indonesia’s presidential regulation on CCS issued on 30 January 2024, which will allow CCS operators to set aside storage capacity for international carbon dioxide.

With the LoI, Singapore and Indonesia affirmed the importance of CCS as a decarbonisation pathway, and the potential of CCS to enable sustainable industrial activities and generate new economic opportunities.

A working group comprising Singapore and Indonesia government officials will work towards a legally binding bilateral agreement that will enable the cross-border transport and storage of carbon dioxide between Singapore and Indonesia.

Keith Tan said: “Cross-border carbon capture and storage is an emerging solution in Asia, and supports Singapore’s transition towards a low-carbon future. Singapore is the first country to sign an LoI with Indonesia after its presidential regulation to allow cross-border CCS was announced.”

“With this LOI, Singapore and Indonesia can become the pathfinders to catalyse deployment of cross-border CCS projects in Southeast Asia.”

Jodi Mahardi added: “This collaboration with Singapore not only amplifies Indonesia’s commitment to leading environmental stewardship in the region but also showcases our proactive approach in harnessing innovative technologies for sustainable growth. The initiative also positions Indonesia as a key player in the Southeast Asian CCS landscape, offering a model for cross-border environmental cooperation.”