President Jokowi and ExxonMobil Join Forces for Rp.232 Trillion Green Petrochemical Project in Indonesia
On November 15, 2023, President Joko Widodo met with Darren Woods, the Chairman of ExxonMobil Corporation, during the APEC Summit that was held in San Francisco, United States. By means of this meeting, President Jokowi had successfully obtained an investment plan agreement valued at $15 billion (or IDR 232 trillion, assuming an exchange rate of IDR 15,523 per US dollar) from ExxonMobil.
The two CCS-related agreements signed at this meeting were as follows: (i) an Amendment to the Principals of Agreement (HOA) between ExxonMobil and PT Pertamina (Persero), allowing for the continued development of the CCS Hub; and (ii) a Memorandum of Understanding (MOU) between the Indonesian Government and ExxonMobil.
Deputy for Maritime Sovereignty and Energy Coordination at the Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves), Jodi Mahardi, and Vice President of ExxonMobil Chemical International Major Growth Ventures Ltd., Zoe Barinaga, signed the Memorandum of Understanding (MoU) between the Indonesian Government and ExxonMobil pertaining to the Advance Petrochemical Complex in Indonesia.
On a different encounter after the occasion, minister of Foreign Affairs, Retno Marsudi, stated that ExxonMobil will establish at least two programmes with this investment, beginning with a carbon storage facility (CCS) or carbon capture storage and green petrochemical complex.
In addition, Arifin Tasrif, the Minister of Energy and Mineral Resources (ESDM), asserted that the partnership arrangement represented a pivotal milestone in Indonesia’s trajectory towards becoming a frontrunner in emissions reduction, as well as a mutual commitment from both entities. Not only will carbon capture technology contribute to the reduction of emissions, but this agreement will also generate employment opportunities in the community.
President Jokowi is pleased that ExxonMobil’s intended development of the project is not just an ordinary project. The capacity is on a global level. In addition to the enormous financial investment, ExxonMobil’s green petrochemical facilities will feature some of the most advanced technologies. Moreover, in Southeast Asia, their CCS facility will be the most comprehensive of its kind.
This, according to Minister Retno, is the justification behind President Jokowi’s continued support for the investment of Exxon Mobil Corporation Woods. Additionally, Retno disclosed that during the meeting between President Jokowi and the Chairman of Exxon Mobil, the President as well issued an invitation to Exxon Mobil to make investments in new and renewable energy sources, as well as the development of green infrastructure, which encompasses IKN Nusantara.
ExxonMobil, a multinational energy corporation, is looking into significant petrochemical investments in Indonesia and other international locations over the course of the next decade. This investment will produce one of the world’s most sophisticated petrochemical complexes.
The decision to choose of Indonesia as a destination for investments demonstrates the country’s competitiveness on account of its favourable fiscal environment, advantageous export logistics position, economic expansion strategies, business-friendly environment, proficient manufacturing and construction labour force, and competitive labour costs.
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