The Indonesian Coordinating Ministry for the Economy and ExxonMobil entered into a Memorandum of Understanding (MoU) on Wednesday, January 22, 2025, to explore investment opportunities for developing an advanced petrochemical complex in Indonesia.

Source: IndonesiaBusinessPost

The purpose of the petrochemical complex is to produce high-performance polymers to cater to the industrial needs in Asia, while also promoting downstream activities and the development of local industries.

Designed as a low-emission facility, the complex will employ Carbon Capture and Storage (CCS) technology. It is expected to expedite the development of high-performance polymer value chains in Indonesia. ExxonMobil is collaborating with the state-owned company PT Pertamina to assess the feasibility of establishing a CCS Hub in Indonesia, which would serve as a centralized carbon storage solution.

Competitiveness

Elen Setiadi, Deputy for Energy and Mineral Resources Coordination at the Coordinating Ministry for the Economy, emphasized that the government is committed to creating appealing fiscal conditions to attract investments.

The MoU was signed by Elen Setiadi and Vice President of ExxonMobil, Zoe Barinaga, with witnesses including Airlangga Hartarto and President of ExxonMobil Indonesia, Carole Gall. This partnership aims to enhance collaboration among the government, industry, and society to promote sustainable economic growth.

If materialized, this investment could rank among the largest in the global petrochemical sector, bolstering Indonesia's status as a significant player in the Asian energy and petrochemical market. With its tremendous potential, Indonesia has the chance to emerge as a center for the advancement of innovative low-carbon technologies.

Downstream and Emission Reduction

As part of the agreement, ExxonMobil will assist in developing Indonesian human resources (HR) through training programs that adhere to global standards. This initiative is also expected to generate a multiplier effect by fostering strategic partnerships with local businesses, as well as supporting the growth of domestic technology, procurement, and construction.

Location

Susiwijono Moegiarso, Secretary of the Coordinating Ministry for the Economy, noted that the site for the CCS facility is currently under survey, with a focus on the Java Sea region.