ExxonMobil partners with Indonesia for a $10 billion project to advance CCS technology, reduce CO2 emissions, and strengthen sustainability efforts.
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| Indonesia and ExxonMobil’s $10B MoU aims to reduce carbon emissions, create jobs, and support a sustainable energy future. Image/ Illustration: ChicHue |
Jakarta, Indonesia — Jan 25, 2025:
Indonesia and ExxonMobil have entered into a $10 billion agreement to drive the development of Carbon Capture and Storage (CCS) technology and boost the petrochemical sector, the Coordinating Ministry for Economic Affairs announced. The memorandum of understanding (MoU) marks a significant investment aimed at fostering sustainability and innovation within Indonesia’s energy sector.
“This project holds substantial strategic value, with an estimated $10 billion investment. We are confident it will have a profound impact on Indonesia’s growth across multiple sectors,” said Airlangga Hartarto, Coordinating Minister for Economic Affairs, on Thursday.
Hartarto expressed optimism that CCS technology could reduce carbon dioxide (CO2) emissions by 90%, furthering the country’s sustainability objectives. The collaboration also aligns with the government’s downstream program, which focuses on job creation and reinforcing Indonesia’s commitment to a sustainable future.
He emphasized ExxonMobil’s commitment to providing training for Indonesian workers to meet international competency standards, ensuring long-term benefits for the local workforce.
Hartarto is optimistic that the CCS and petrochemical development project will break ground soon and become Indonesia’s first operational CCS project. “This initiative will generate a multiplier effect for local businesses through strategic partnerships,” he noted.
The MoU also lays the foundation for a Joint Task Force to coordinate the project’s implementation. Hartarto stressed that the partnership aligns with the government’s goal of fostering a business-friendly investment climate.
“ExxonMobil has a longstanding presence in Indonesia and is well-acquainted with the country. Their extensive experience in the oil and gas sector is invaluable. I congratulate them and look forward to the swift development of this project,” he concluded.
The MoU was signed on January 22 in Jakarta 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.