NUSA DUA, Indonesia (Reuters) - U.S. President Joe Biden on Monday announced a number of investments in Indonesia spanning areas like climate and food security, including a $2.5 billion agreement between ExxonMobil (NYSE:XOM) and state-owned energy company Pertamina on carbon capture.
ExxonMobil and Pertamina's agreement will further assess development of a regional carbon capture and sequestration hub in Indonesia, the White House said in a statement.
The partnership "will enable key industry sectors to decarbonise" the statement said, citing the refining, chemicals, cement, and steel sectors. It said this would lower carbon emissions, ensure economic opportunities for Indonesian workers and help Indonesia achieve its net-zero ambitions in 2060 or sooner.
A joint study by Pertamina and Exxonmobil had found a potential carbon storage capacity of 1 billion tonnes in Pertamina's oil and gas fields, which could permanently store Indonesia's emissions for the next 16 years, Pertamina said in a separate statement on Sunday.
Biden is visiting Indonesia to take part in a G20 summit this week in Bali and announced the investments in a meeting with Indonesian President Joko Widodo, where he described the Southeast Asian country as a "critical partner".
The U.S. president also said the two countries would collaborate to "protect our people" from COVID-19.
The United States and Indonesia also agreed to launch a $698 million Millennium Challenge Corporation (MCC) compact to help support development of climate-conscious transportation infrastructure in five Indonesian provinces and 'other development goals', the White House statement said.
The funds include $649 million from the United States and $49 million from Indonesia.