To realize the plan, Pertamina and ExxonMobil signed amendments to their basic agreement as a continuation of the agreement reached at the Group of 20 event in November 2022. The signing was conducted by PT Pertamina president director Nicke Widyawati, Pertamina Hulu Energi Wiko Migantoro and ExxonMobil Asia Pacific Pte. Ltd Low Carbon Solutions president Irtiza Sayyed.

In the agreement, Pertamina and ExxonMobil have agreed to continue their collaboration for the evaluation of the CCS Hub in the western part of the Java Sea, specifically in the Asri Basin and Sunda Basin. The CCS Hub in this location is expected to provide significant geological storage, capable of capturing and injecting carbon dioxide from domestic and regional industries.

The signing was held on Monday, Nov. 13, 2023, in Washington, DC, and was witnessed by interim Coordinating Maritime Affairs and Investment Minister Erick Thohir, Energy and Mineral Resources Minister Arifin Tasrif and the United States ambassador to the Republic of Indonesia.

Interim Coordinating Maritime Affairs and Investment Minister Erick Thohir said, “The agreement signed today signifies a crucial step in Indonesia's journey as a leader in emissions reduction. The cutting-edge technology behind the CCS Hub will not only reduce emissions and promote low-carbon industries but also create job opportunities and attract investments.”

Deputy Coordinating Maritime Affairs and Investment Ministry Jodi Mahardi, after the signing of the MoU, stated, “The document signed is a crucial part of the lengthy process undertaken by the Indonesian government to build the CCS ecosystem. With this agreement, it proves that all components in Indonesia, particularly from the government's perspective, are ready to harness the potential of CCS for the advancement of low-carbon industries, increased investment and the creation of new job opportunities for the Indonesian people.”

Pertamina president director Nicke Widyawati explained that Pertamina consistently continued to develop decarbonization programs, one of which was the development of the CCS Hub to be built in collaboration with strategic partners such as ExxonMobil.

According to Nicke, the project has the opportunity to store CO2 in strategic areas, with the development of the CCS Hub in the Java region, which is very close to the locations of various industries. The CCS Hub will provide access to geological storage in saline aquifers, capable of accommodating at least 3 gigatons of carbon dioxide from domestic and regional carbon-intensive industries.

“This project will enable Indonesia to become a regional leader in industrial decarbonization, as it possesses significant carbon storage potential. The hope is that in the future, Indonesia can become the center of CCS in Southeast Asia,” said Nicke.

Pertamina, as a leading company in the energy transition sector, is committed to supporting the country’s target for net-zero emissions by 2060 by continuously promoting programs that directly impact the achievement of the Sustainable Development Goals (SDGs). All these efforts align with the implementation of environmental, social and governance (ESG) principles across all Pertamina's business lines and operations.

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