United States-based ExxonMobil and PT Pertamina, a state-owned oil and gas (O&G) company, have signed a USD2.5 billion agreement to develop Indonesia’s carbon capture capacity. The agreement will focus on decarbonising some key industries in the country including the refining, chemicals, cement and steel sectors.

A joint study undertaken by the partners has discovered that Pertamina’s O&G fields have a potential carbon storage capacity of one billion tonnes. The deal is expected to be critical in achieving the Government of Indonesia’s aim of achieving net-zero by 2060.

Additionally, the Government of US and Indonesia have launched a USD698 million Millennium Challenge Corporation (MCC) compact to develop sustainable transport infrastructure in five provinces in Indonesia. Out of the total, USD49 million will be provided by the Government of Indonesia while USD649 million will be provided by its counterpart.