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Indonesia plans to initiate its carbon market by July 2026, targeting transaction values in the billions of dollars, as outlined in Presidential Regulation No. 110/2025. The government will focus on nature-based solutions and carbon capture and storage (CCS) technologies.

PT Energi Mega Persada has signed an MoU with PT Pupuk Indonesia for CCS and CCUS development at the Arun gas field, which can potentially store around 504 million tons of CO2. The underwater caverns from colonial oil wells could allow Indonesia to achieve a CCS capacity of 500-700 gigatons of carbon. This initiative aims to position Aceh as a regional carbon hub.