Indonesia and ExxonMobil have signed a $10 billion agreement to advance the petrochemical sector and develop Carbon Capture and Storage (CCS) technology, according to the Coordinating Ministry for Economic Affairs. The memorandum of understanding (MoU) outlines a significant investment aimed at driving sustainability and innovation in Indonesia’s energy sector, reports Antara.
“This project holds immense strategic value, with an estimated $10 billion investment. We are confident it will have a profound impact on Indonesia's development across various sectors,” said Coordinating Minister for Economic Affairs Airlangga Hartarto on Thursday.
Hartarto expressed optimism that the CCS technology could reduce carbon dioxide (CO2) emissions by 90%, contributing to the country’s sustainability goals. The collaboration is also aligned with the government’s downstream program, which aims to encourage job creation and strengthen Indonesia’s commitment to a sustainable future.
He also highlighted ExxonMobil’s commitment to training Indonesian workers to meet global competency standards, reinforcing the project’s long-term benefits for the local workforce.
The minister is hopeful that the CCS and petrochemical development project will soon break ground and that it will become the first operational CCS project in Indonesia. “This project will create a multiplier effect for local business growth through strategic partnerships,” Hartarto added.
The MoU sets the stage for a Joint Task Force to coordinate actions and ensure the successful realization of the project. Hartarto emphasized that the cooperation aligns with the government’s goal of fostering a business-friendly and competitive investment climate.
“ExxonMobil has a long history in Indonesia. They are familiar with the country and have extensive experience in the oil and gas sector. I congratulate them and look forward to the swift development of this project,” he concluded.
The MoU was signed in Jakarta on January 22 by Elen Setiadi, Deputy for Energy and Mineral Resources Coordination at the Coordinating Ministry for Economic Affairs, and Zoe Barinaga, Vice President of ExxonMobil Chemical International Major Growth Ventures.
Bd-pratidin English/ Jisan
