ExxonMobil to Build $15 Billion Carbon Capture Storage and Petrochemical Plant in Indonesia
JAKARTA, investortrust.id – The Indonesian government has signed a memorandum of understanding with ExxonMobil Chemical to develop a Carbon Capture Storage (CCS) facility and a petrochemical plant, with a total investment of $15 billion.
“This MoU represents a shared commitment to fostering inclusive, competitive, and sustainable economic development,” said Coordinating Minister for Economic Affairs Airlangga Hartarto at his office in Jakarta on Wednesday, Jan. 22, 2025.
Boosting Indonesia's Petrochemical Sector and Carbon Storage Technology
Airlangga emphasized that this collaboration is a vital step in advancing Indonesia’s petrochemical sector and carbon storage technology. ExxonMobil Chemical plans to focus on producing plastic and synthetic fiber, contributing significantly to industrial development.
The initial investment by ExxonMobil Chemical amounts to $10 billion, underscoring the company’s support for President Prabowo Subianto’s downstream initiatives aimed at creating jobs and promoting sustainability.
Emission Reduction and Workforce Development
The CCS facility is expected to reduce carbon dioxide emissions by up to 90%. In addition to environmental benefits, the projects are anticipated to enhance the skills of Indonesia’s workforce to meet global standards.
“These projects are expected to provide a multiplier effect on local business growth through strategic partnerships,” Airlangga noted.
Location and Next Steps
Susiwijono Moegiarso, Secretary of the Coordinating Ministry for Economic Affairs, revealed that the CCS facility could capture up to 3 million tons of carbon. The project will be located in the Sunda Asri region, with ExxonMobil currently assessing potential sites between the Sunda Strait and the Java Sea.
Following the agreement, the government will establish a task force to expedite the construction of the seabed CCS facility. Once the location is finalized, a petrochemical plant requiring 500 hectares will be built, with potential sites in Java no more than 100 kilometers from the CCS facility.
“We are helping to identify a location for the petrochemical plant. ExxonMobil has specified a requirement for proximity to the CCS facility,” Susi explained.