PHE Builds Two CCS Hubs to Lead Indonesia’s Decarbonization Push
Key Takeaways
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KUALA LUMPUR, Investortrust.id — Pertamina Hulu Energi, or PHE, the upstream oil and gas subsidiary of Pertamina, has built momentum to become a leading player in Indonesia’s decarbonization efforts by developing two large-scale carbon capture storage hubs with a combined capacity of 3 gigaton.
The initiative is part of Pertamina Group’s long-term strategy to help the government achieve net zero emissions by 2060.
Pertamina, officially PT Pertamina (Persero), is Indonesia’s state-owned energy company and parent of PHE. The group has placed carbon capture and storage, along with carbon capture utilization and storage, at the center of its long-term energy transition agenda.
“Carbon capture and storage and carbon capture utilization and storage are among the most promising solutions to reduce carbon emissions,” said PHE Investment and Business Development Director Dannif Utojo Danusaputro at the Asia Pacific CCUS Conference & Exhibition 2025 in Kuala Lumpur, Malaysia, on Tuesday, Aug. 26, 2025.
Drawing on decades of upstream expertise, PHE has created a CCS and CCUS business cluster with a capacity of 60 metric tons per year. In western Indonesia, the company is developing a hub at the Asri Basin with a storage potential of 1.1 gigaton. In the east, it is preparing a hub at the Central Sulawesi Basin with a 1.9 gigaton capacity.
Beyond the two hubs, PHE also plans to establish CCS and CCUS satellites in South Sumatra Basin, Sukowati for CO₂ enhanced oil recovery, and East Kalimantan. Additional studies are being conducted at Central Sumatra Basin, South Sumatra Basin’s saline aquifers, East Java Basin, and Jambaran Tiung Biru field.
PHE estimates Indonesia’s overall carbon storage potential across saline aquifers and depleted oil and gas fields at 7.3 gigaton. “We will develop two CCS hubs and several satellite projects to serve both domestic and international emitters. Building this ecosystem requires collaboration with strategic partners,” Dannif said.
Forum Asia Pacific CCUS Conference & Exhibition 2025 in Kuala Lumpur, Malaysia, Tuesday, Aug. 26, 2025. Photo: Courtesy of PHE
Five Areas of Support
Dannif highlighted the need for strong government support to ensure CCS industry sustainability, outlining five areas that could accelerate the ecosystem: project financing, carbon pricing mechanisms, research and development, technical standards, and cross-border governance.
On financing, he pointed to the United Kingdom’s CCS Infrastructure Fund as a model. For carbon pricing, he suggested expanding beyond coal-fired power plants, similar to the emission trading system in the UK.
In research and development, Dannif cited the United States Department of Energy program that allocates about $3 billion, equal to Rp 49.5 trillion, for CCS pilot projects. He also stressed the importance of clear safety standards, as applied in the UK.
Finally, he referred to Norway’s model for international carbon trade governance as an example for Indonesia to follow. “Domestic and international emitters represent a major market opportunity for building CCS ecosystems in Indonesia and the Asia-Pacific region,” he said.
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