Indonesia has finalized the regulation for implementing carbon capture and storage (CCS), reinforcing its commitment to reducing global carbon emissions.

Dadan Kusdiana, the secretary general of the Ministry of Energy and Mineral Resources, announced on Tuesday that the regulation is currently awaiting President Joko Widodo's approval before it can take effect.

"The regulation has completed the harmonization process and is now in the process of obtaining approval from the president," Kusdiana said during a webinar on carbon trading in Jakarta.

Kusdiana said besides contributing through CCS, Indonesia is also working on expanding the use of renewable energy and other low-carbon energy sources.

Indonesia, one of the world's largest producers and exporters of coal, has pledged to cut greenhouse gas emissions by 31.89 percent by 2030 on its own or by 43.2 percent with international help.

In May 2023, the Indonesia Carbon Capture and Storage Center was established to support the development of low-carbon businesses involving hydrogen, blue and green ammonia, or blue and green methanol, in the Southeast Asian country.

In September 2023, Widodo launched Indonesia's first carbon exchange, IDXCarbon, to facilitate carbon trading. This scheme allows companies or organizations focused on renewable energy to sell carbon credits to emitters such as coal producers.