JAKARTA – ExxonMobil, an oil and gas company based on the United States (US), has signed a Memorandum of Understanding (MoU) with the Indonesian government for the development of Carbon Capture Storage (CCS) and petrochemical projects.

The initial investment is projected to reach USD 10 billion. However, in the long-term, total investment from ExxonMobil is estimated to arrive at USD 15 billion.

Airlangga Hartarto, Coordinating Minister of Economic Affairs of Indonesia, claimed that this investment will support the downstream policy implemented by President Prabowo Subianto. He also wishes that this investment may reduce CO2 emission by 90%.

“It will potentially be the first CCS project operating in Indonesia,” said Hartarto after signing the MoU yesterday (22/1).

CCS facility will be built on Sunda Asri Strait, according to the Coordinating Deputy of Energy and Mineral Resource of Coordinating Minister of Economic Affairs of Indonesia, Elen Setiadi. For the petrochemical plant, the location is to be determined as it is still under survey.

Said petrochemical plant location, added Setiadi, requires a land of 500 hectares. “With deal distance of no less than 100 kilometres from CSS facility,” said Hartarto.

In order to expedite this investment realisation, the Indonesian government will establish a special task force this month. (KR/ZH)