Policy Brief

Navigating the Evolving CCS/CCUS Regulatory Frameworks of Indonesia and Malaysia: Improving Investor Confidence and Environmental Integrity

Author : Lintang Ambar Pramesti, Matthew Justin Lesmana, Tubagus Aryandi Gunawan, Suwanto, Dewi Mersitarini, Dimas Ardiyanta, Jhon Henriano, Surianee Bt Rosli Wong, Siti Normaizan Hassan Published Date: 22 April 2026
AGEP Programme Report 2021

Highlights

  • Indonesia and Malaysia have progressed significantly in developing CCS/CCUS policy, regulation, and supportive environments.
  • To improve CCS/CCUS development in Indonesia, it is recommended to create a time-bound CCS taskforce to streamline multi-agency approvals, provide interim guidance on tariffs and procedures, and publish frameworks for storage fees and capacity allocation with standardised MRV protocols.
  • Recommendation for Malaysia includes publishing a transparent methodology for the Post-Closure Stewardship Fund injection levy with risk-based variations, developing tiered liability frameworks that balance perpetual accountability with reduced phased operator exposure, and mandating public consultation processes for large-scale CCS projects.
  • For ASEAN, it is recommended to adopt a regional "minimum common package" that sets shared standards for custody handover, MRV data protocols, incident reporting, and dispute resolution.