2026-04-06 02:52:00 EDT
Indonesia's state-owned energy giant Pertamina has inked a memorandum of understanding with South Korea's Posco International to explore low-carbon technologies, according to a news release on Thursday.
The agreement was signed on Wednesday in South Korea by Pertamina's President Director Simon Aloysius Mantiri and Posco International's Chief Executive Officer Kye-In Lee. Areas of collaboration include carbon capture storage, carbon capture utilization and storage, blue hydrogen or ammonia production, and new renewable energy projects.
The MoU came amid Indonesian President Prabowo Subianto's visit to South Korea, which saw several other MoUs inked.
"This collaboration is an important step for Pertamina to accelerate the development of a low-carbon technology ecosystem in Indonesia, by utilizing CCS/CCUS technology, developing blue hydrogen, and developing new renewable energy, which is expected to support emission reduction targets while opening up opportunities for a carbon economy in the future," said Mantiri.
Pertamina said it is committed to supporting the 2060 net zero emissions target and continues to promote programs that have a direct impact on achieving sustainable development goals.
Indonesia's enhanced Nationally Determined Contribution under the Paris Agreement commits to cutting emissions 31.82% unconditionally, or 43.2% with international aid by 2030 relative to business-as-usual levels.
The MoU is in line with the Indonesian government's aim to increase investment in new and renewable energy, as part of efforts to protect the nation from an energy crisis resulting from tensions in the Middle East.
"We seek to use the recent trend as momentum to accelerate several policies and investments that promote the use of renewable energy sources, such as geothermal, solar and hydro," said Minister of Investment and Downstreaming Rosan Roeslani at a press conference on Tuesday.
South Korea aims to slash greenhouse gas emissions by 40% below 2018 levels by 2030 and 53% to 61% by 2035.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
--Reporting by Sang Ah Lee, slee@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com
(END) Dow Jones Newswires
April 06, 2026 02:59 ET (06:59 GMT)
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