Indonesia and South Korea Study Cross-Border CCS Project in the Asri Basin

Jakarta — Pertamina Hulu Energi (PHE) together with ExxonMobil Low Carbon Solutions Indonesia Limited and two major South Korean energy groups are collaborating on a study to develop a cross-border carbon capture and storage (CCS) project.

The two South Korean companies are SK Innovation and its subsidiary SK Earthon. SK Earthon operates in oil and natural gas exploration.

PHE, ExxonMobil, SK Innovation, and SK Earthon signed a Joint Study Agreement (JSA) related to developing a cross-border Indonesia–Korea CCS project.

‘Through this strategic collaboration, PHE, together with its global partners, is committed to supporting the development of an integrated CCS ecosystem in Indonesia,’ said PHE Corporate Secretary Hermansyah Y Nasroen in a statement on Saturday (23 May 2026).

Hermansyah said the cooperation includes preliminary studies and a feasibility study for the cross-border CCS project.

The scheme involves sending carbon dioxide or CO2 from Korea to Indonesia.

The CO2 would subsequently be stored at the CCS Hub Asri Basin, in the waters between Java and Sumatra.

The agreement is seen as a strategic step in developing the CCS ecosystem in the Asia-Pacific region.

Hermansyah noted that the JSA demonstrates the commitment of PHE, ExxonMobil, SK Innovation, and SK Earthon to support decarbonisation projects and the net-zero emission (NZE) targets.

According to Hermansyah, the cooperation will be a milestone in accelerating the carbon capture and storage industry in Indonesia.

‘This initiative is not only part of decarbonisation efforts, but also opens up new investment opportunities, technology transfer, and strengthens Indonesia’s position as a hub for CCS development in the Asia-Pacific region,’ Hermansyah said.

Hermansyah said the cross-border Indonesia–Korea CCS project could attract investment of up to US$600 million.

That amount is equivalent to around IDR 10.6 trillion.