PHE Partners with ExxonMobil and SK Group on Indonesia-South Korea CCS Project with $600 Million Potential
PT Pertamina Hulu Energi (PHE), Pertamina’s upstream subholding, alongside ExxonMobil Low Carbon Solutions Indonesia Limited, SK Innovation, and SK Earthon, has signed a joint study agreement (JSA) to explore the development of a transboundary carbon capture and storage (CCS) project between Indonesia and South Korea.
PHE estimates the cross-border CCS project could attract cumulative investment of up to US$600 million into Indonesia as the country providing carbon storage capacity.
The signing took place during the Indonesia Petroleum Association Convention and Exhibition (IPA Convex) 2026 at ICE BSD, Tangerang, on Wednesday, 20 May 2026. The collaboration is a strategic move to strengthen the regional CCS ecosystem in the Asia-Pacific and bolster Indonesia’s position as a key carbon storage hub in the region.
The JSA 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.
Hermansyah Y Nasroen, Corporate Secretary of PHE, stated that the collaboration marks a significant milestone in developing the national carbon capture and storage industry while strengthening international low-carbon business partnerships.
“Through this strategic collaboration, PHE and its global partners are committed to supporting the development of an integrated CCS ecosystem in Indonesia. This initiative not only contributes to decarbonisation efforts but also opens new investment opportunities, technology transfer, and strengthens Indonesia’s position as a CCS development hub in the Asia-Pacific region,” Hermansyah said on Sunday, 24 May 2026.
The joint study agreement follows a memorandum of understanding (MoU) signed previously in South Korea on Tuesday, 1 April 2026, during the Indonesia-Korea Business Forum.
The collaboration aims to bolster stakeholder confidence in Indonesia’s CCS potential through technology development, industry synergy, and strengthened cross-border cooperation in the Asia-Pacific region.
Under the collaboration, parties will conduct preliminary and feasibility studies for the cross-border CCS project, which involves transporting carbon dioxide (CO₂) from South Korea to Indonesia’s Asri Basin CCS hub for secure storage.
Additionally, the partnership includes information, technology, and knowledge exchange regarding the CCS value chain, aiming to accelerate readiness for developing a regional CCS business between Indonesia and South Korea.
The collaboration also aims 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 industries in Indonesia.
If realised, Hermansyah said the cross-border CCS project could attract cumulative investment of up to US$600 million into Indonesia as the country providing carbon storage capacity.
In addition to investment, the project is expected to create up to 2,000 jobs during the construction phase for every one million tonnes per annum (MTPA) of CO₂ storage capacity.