PHE Optimistic Indonesia-South Korea CCS Project to Open New Investment Opportunities
The signing of the Joint Study Agreement (JSA) during the Indonesia Petroleum Association Convention and Exhibition (IPA Convex) 2026 at ICE BSD, Tangerang, on Wednesday, 20 May 2026, marks a strategic step to strengthen regional cooperation in developing the carbon capture and storage (CCS) ecosystem across the Asia-Pacific. The collaboration also reinforces Indonesia’s position as a potential carbon storage hub in the region.
This joint study agreement follows a Memorandum of Understanding (MoU) signed in South Korea on 1 April 2026 during the Indonesia-Korea Business Forum, as part of enhancing strategic bilateral cooperation on low-carbon ecosystems and regional CCS development.
The JSA signing also underscores the joint commitment of PHE, ExxonMobil Low Carbon Solutions Indonesia Limited, SK Innovation, and SK Earthon to support CCS projects aimed at advancing decarbonisation and achieving Net Zero Emission (NZE) targets.
The collaboration is expected to bolster stakeholder confidence in Indonesia’s CCS development potential, support regional CCS ecosystem development through cross-border cooperation, technology advancement, and stakeholder synergy across the Asia-Pacific.
The joint study agreement was signed by PHE’s President Director Awang Lazuardi, ExxonMobil Low Carbon Solutions Indonesia Limited President Egon E Van Der Hoeven, SK Innovation Vice President Jongmun Lee, and SK Earthon Vice President Dooyun Park.
The scope of the JSA includes preliminary and feasibility studies for a cross-border CCS project, involving the transportation of carbon dioxide (CO2) from South Korea to Indonesia’s Asri Basin CCS hub for secure storage.
The collaboration also covers the exchange of information, knowledge, and technology related to the CCS value chain, aiming to accelerate readiness for regional CCS business development and support global decarbonisation efforts.
The partnership is also expected to support the development of a more integrated cross-border CCS framework in the region, including regulatory aspects, technical standards, and the development of supporting CCS industrial ecosystems in Indonesia.
Corporate Secretary Hermansyah Y Nasroen said the collaboration is a significant milestone in advancing Indonesia’s carbon capture and storage industry while opening opportunities for strengthened international low-carbon business collaboration.
“Through this strategic partnership, PHE and its global partners are committed to developing an integrated CCS ecosystem in Indonesia. This initiative not only contributes to decarbonisation efforts but also creates new investment opportunities, technology transfer, and strengthens Indonesia’s position as a CCS development hub in the Asia-Pacific region,” he added.
If realised, PHE estimates the cross-border CCS project could attract cumulative investment of up to $600 million into Indonesia as a storage capacity provider.
Additionally, according to PHE’s data and studies, the project is expected to create up to 2,000 construction jobs for every one million tonnes per annum (MTPA) of CO2 storage capacity.
PHE will continue to invest in upstream oil and gas operations and business management in line with Environmental, Social, and Governance (ESG) principles. The company remains committed to a zero-tolerance policy on bribery, ensuring fraud prevention and a corruption-free environment through the implementation of the ISO 37001:2016-standardised Anti-Bribery Management System (SMAP).