Environmental stewardship and climate change mitigation in Indonesia's oil and gas sector: A review of HSE practices

¹ Department of Environmental Engineering, Faculty of Engineering, Universitas Andalas, Padang, 25163, Indonesia
² The United Graduate School of Agricultural Sciences, Ehime University, 3-5-7 Tarumi, Matsuyama 790-8566, Japan

^* Corresponding author: taufiqihsan@eng.unand.ac.id

Abstract

This paper offers a critical review of environmental stewardship in Indonesia's oil and gas sector, assessing current Health, Safety, and Environment (HSE) practices and greenhouse gas (GHG) emission reduction initiatives. While acknowledging the sector's pivotal role in the national economy, we underscore significant environmental challenges linked to its operations. Our analysis evaluates the strengths and weaknesses of the HSE regulatory framework, revealing a clear need for enhanced enforcement and regulatory capacity. We examine HSE management systems, noting performance variations between large multinational and smaller domestic operators, and emphasize the critical roles of leadership commitment and employee engagement. The review details key HSE concerns, including oil spills, water pollution, occupational hazards, waste management complexities, and impacts on biodiversity. We also assess the practicalities of climate change mitigation possibilities specific to Indonesia, such as flare reduction, energy efficiency, Carbon Capture, Utilization, and Storage (CCUS), and renewable energy integration. Ultimately, this study synthesizes these dilemmas, focusing on Indonesia's unique economic and governance context, to propose pathways for a more sustainable future for the nation's vital oil and gas industry.