Govt Sets New Rules to Cut Emissions from Flaring

The government keeps encouraging flaring reduction to cut greenhouse gas (GHG) emissions. Based on the Ministry of Energy and Mineral Resources (ESDM) data from 2018 to 2020, the flaring had decreased yet still below the government’s expectations. From the data, there is still a flaring of 120 million standard cubic feet per day (MMscfd) in Indonesia.

ESDM Ministry’s Director of Engineering and Environment Wakhid Hasyim said that most oil and gas companies still burn flaring on the back of mounting challenges for effective flaring reduction. "The government fully supports the efforts of cooperation contract contractors [KKKS] and processing business permits holders in efforts to reducing and utilizing flaring," he said on Thursday (9/16).

Therefore, the government issued ESDM Minister Regulation No. 17/2021 on the Gas Flaring Management in Oil and Gas Business Activities, which took effect on July 9. The regulation is the government’s effort to achieve the 2030 Zero Routine Flaring Policy declared by ESDM Minister to the World Bank. However, it takes stakeholders' cooperation to achieve the commitment. "Therefore, it is necessary to regulate existing provisions, including those related to flaring," Wakhid said.