ExxonMobil Set to Inject $15 Billion Investment in Indonesia

ExxonMobil Set to Inject $15 Billion Investment in Indonesia

U.S. oil giant Exxon Mobil (XOM.N) plans to invest up to $15 billion in petrochemical projects and carbon capture and storage (CCS) facilities in Indonesia. 

This was revealed by Indonesian President Joko Widodo (Jokowi) in an official statement at the presidential palace on Thursday after meeting with Exxon Chairman Darren Woods during his visit to San Francisco to attend the Asia-Pacific Economic Cooperation (APEC) summit.

Early this week, Indonesia and Exxon reached a preliminary agreement to explore potential investments in petrochemical projects in Indonesia. In addition, Exxon and Indonesia's national energy company, Pertamina, agreed to explore a $2 billion investment in a CCS facility that will use two underground basins in the Java Sea.

Carole Gall, president of Exxon Mobil Indonesia, said these large-scale opportunities have great potential to drive industrial growth and decarbonization in Indonesia and the Asia-Pacific region.

The planned CCS facility is expected to be the largest in the region, with the potential to capture at least 3 gigatons of carbon dioxide generated by the industrial sector in Indonesia and beyond, Pertamina said. Meanwhile, the petrochemical complex is expected to be one of the most advanced in the world.

Indonesia wants to use its dwindling oil and gas reserves for carbon storage and is working on regulations that will allow carbon storage imported from abroad to be stored domestically.

All of these deals were struck during President Joko Widodo's visit to Washington to meet with US President Joe Biden ahead of this week's Asia-Pacific Economic Cooperation (APEC) summit in San Francisco. 

After the meeting, Foreign Minister Retno Marsudi, who accompanied the President, confirmed that Exxon has plans to build one of the world's most advanced environmentally friendly petrochemical refineries.

Marsudi said that President Jokowi continues to encourage the implementation of Exxon's US$15 billion investment plan. The President also invited multinational oil and gas companies from the United States to make innovative and sustainable investments in the energy sector. They are also expected to play an active role in the development of environmentally friendly infrastructure, including in the archipelago, which has been designated as Indonesia's future capital.

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