US oil and gas giant ExxonMobil has conveyed a major investment commitment of US$15 billion in the Carbon Capture and Storage/Carbon Storage, Utilization and Storage (CCS/CCUS) development project in Indonesia.
The commitment was specified by President of ExxonMobil Indonesia, Carole Gall, in a meeting with President Prabowo Subianto at the State Palace in Jakarta on Tuesday, December 3, 2024, along with executives of companies grouped under the US-ASEAN Business Council (US-ABC).
“ExxonMobil conveyed its commitment to invest up to US$ 15 billion. Their focus is on the development of the very strategic CCS/CCUS project,” Minister of Investment and Downstream/Head of the Investment Coordinating Board (BKPM) Rosan P. Roeslani said as quoted in a media statement on Tuesday.
This figure is much larger than the previous commitment from the British oil and gas company, BP, which plans to invest US$7.1 billion in the CCS/CCUS sector in Indonesia.
Rosan added that the CCS/CCUS sector is the government’s main concern in order to support the carbon emission reduction target. This CCS/CCUS technology allows carbon storage from industrial activities, which is in line with Indonesia’s sustainability targets.
Foreign investors’ optimism
Rosan stated that member companies of the US-ABC expressed their optimism on investment climate in Indonesia.
He cited that under President Prabowo’s leadership, investors view positively the government’s measures in creating a conducive business environment, including a commitment to law enforcement and corruption eradication.
“President Prabowo has emphasized that there is no tolerance for corruption or other obstacles that can disrupt investment. The rule of law will be enforced to provide a sense of security for investors,” he said.
Rosan also emphasized the importance of foreign investment to support the development of local human resources. He hopes that large investments from companies such as ExxonMobil and BP can provide technology transfer and increase the capacity of the Indonesian workforce.
“When they invest, it is hoped that they will also developour human resources, so that there is a transfer of technology that has a positive impact on local workers,” he said.
President Prabowo, according to Rosan, conveyed the government’s commitment to continue supporting collaboration between foreign and domestic investors in order to encourage sustainable economic growth.
“The President emphasized that the government will maintain the investment climate, both those that are already running and those that will enter, by encouraging solid cooperation between foreign and local investors,” Rosan said.
He cited that the meeting is a strong signal for the sustainability of foreign investment in Indonesia, especially in the sustainable energy sector and industrial downstreaming.
“The government is optimistic that this measure can strengthen Indonesia’s position as a strategic investment destination in Southeast Asia,” he concluded.
