The Indonesian government has signed two agreements related to the potential of Carbon Capture Storage (CCS) in Indonesia, estimated to reach 400 gigatons. This signifies Indonesia's readiness to lead industrial decarbonization Representing the Coordinating Ministry for Maritime Affairs and Investment (Coordinating Ministry), Deputy for Coordination of Maritime Sovereignty and Energy, Jodi Mahardi, attended the signing ceremony on Monday (13/11/2023). "The signing of these agreements proves that all components in Indonesia, especially from the government's perspective, are ready to harness Indonesia's CCS potential for the advancement of low-carbon industries, increased investment, and the creation of new job opportunities for the Indonesian people," said Deputy Jodi. With Indonesia's current carbon storage potential estimated at 400 gigatons, significant business and investment opportunities are presented.
The two CCS-related agreements signed include (i) the Amendment of the Basic Agreement (HOA) enabling further progress of the CCS Hub by PT Pertamina (Persero) with ExxonMobil; and (ii) the Memorandum of Understanding (MOU) between the Indonesian Government and ExxonMobil. The Memorandum of Understanding (MoU) between the Indonesian Government and ExxonMobil regarding the Advance Petrochemical Complex in Indonesia was signed by Deputy Jodi and Vice President of ExxonMobil Chemical International Major Growth Ventures Ltd., Zoe Barinaga. This MoU outlines agreements to explore the evaluation and development of an advanced petrochemical complex in Indonesia. This potential complex will produce high-quality polymers to meet the growing market demand in Asia. The investment plan will also create jobs and business opportunities during the construction phase and employment during production, maintenance, and related services. The investment plan will be designed as a low-emission petrochemical complex, leveraging the CO2 storage opportunities around it, such as the CCS Hub being evaluated by ExxonMobil and Pertamina PT (Persero). This investment plan serves as a fitting example of the multiplier effects that can be generated by the CCS Hub for Indonesia. These agreements signify Indonesia's readiness to lead in industrial decarbonization, attract foreign investment, and pave the way for downstream progress. The value of this investment plan can reach billions of USD, emphasizing the commitment to climate solutions, energy supply resilience, emission reduction, and a sustainable low-carbon future.
