ABSTRACT

Indonesia’s carbon emissions have risen sharply, with a 260% increase since 2000, primarily driven by the industrial and electricity sectors. As the industrial sector becomes the largest energy consumer in the country, the heavy reliance on fossil fuels presents a significant challenge to Indonesia’s clean energy transition. To mitigate the rising emissions and support economic growth, the government has set ambitious targets, including achieving net-zero emissions by 2060. One promising solution is the development of Carbon Capture and Storage (CCS) hubs, which could significantly contribute to emission reductions while boosting the economy. This paper uses SWOT analysis and benchmarking with successful CCS hubs in Canada and Norway to evaluate the potential for CCS hub development in Indonesia. The findings reveal both strengths, such as existing CO₂ storage potential, and challenges, including regulatory gaps and public perception hurdles. Based on these insights, strategic recommendations are proposed, including expanding storage capacity, activating domestic and international markets, fostering stakeholder engagement, and developing a business model tailored to Indonesia’s landscape. The paper concludes that CCS hubs could play a crucial role in Indonesia’s decarbonization efforts, offering both environmental and economic benefits while enhancing global competitiveness.