ExxonMobil announces $10 billion investment in Indonesia, petrochemical and carbon capture projects

JAKARTA, -ExxonMobil Chemical Company (Exxonmobil Chemical) has officially announced a major investment plan to invest US $10 billion in Indonesia to develop the petrochemical industry and build a carbon capture and storage (CCS) facility, the so-called "carbon warehouse".

Economic Coordinating Minister Airlangga Hartarto said at a press conference on Wednesday that the memorandum of understanding (MOU) signed by the two sides reflects their commitment to jointly promote inclusive, competitive and sustainable economic development. He emphasized: "This project is of great strategic significance. The estimated investment is as high as US $10 billion, which is expected to have a profound impact on the progress of many industries in Indonesia."

it is reported that the initial investment will focus on the production of petrochemical products such as plastics and synthetic fibers. Subsequently, ExxonMobil also plans to invest $5 billion million in CCS facilities to further reduce carbon emissions. According to the current exchange rate (1 U.S. dollar to 16,327 rupiah), the investment of 10 billion U.S. dollars is equivalent to about 163.2 trillion rupiah's investment is not only a strong support for the downstream policies proposed by Indonesian President Prabowo Su to create more jobs and promote sustainable development, but also marks the birth of Indonesia's first CCS project. It is estimated that the CCS project is expected to reduce carbon emissions by 90%.

In addition, the Airlangga Minister also mentioned that ExxonMobil will work to upgrade the skills of Indonesian workers to global standards. He said: "We hope that through this strategic partnership, we will have a multiplier effect on local business growth."

Regarding the construction of the CCS facility, Economic Ministry Secretary Susiwijono Moegiarso revealed that the facility is planned to be built on the seabed and is expected to hold up to 3 million tons of carbon. At present, the government and ExxonMobil are looking for suitable construction sites between Sunda Asri, Sunda Channel and Java Sea. He added: "We are helping to locate investments in the petrochemical industry, they need 500 hectares of land. There are several potential options in Java, but they want to keep a distance of at least 100km from the CCS facilities."

it is worth mentioning that the Indonesian government has committed to achieve a 31.89 per cent emission reduction target by 2030 (including international support) through the Enhanced Nationalized Contribution (ENDC) document, and aims to achieve zero net emissions by 2060. ExxonMobil's investment in developing a CCS "warehouse" in Indonesia is seen as an important step towards achieving this goal. It is estimated that the total investment requirements for the development of carbon capture and storage facilities in Indonesia will reach 2.4 trillion US dollars, or about 39,313 trillion rupiah.