Ahead of the Asia-Pacific Economic Cooperation (APEC) Summit in San Francisco this week, Indonesia President Joko Widodo and the United States (US) President Joe Biden on Monday held a bilateral meeting to discuss the Comprehensive Strategic Partnership between the two countries. The partnership includes security cooperation, collaboration to combat climate crisis, and economic cooperation. As a sign of goodwill, the US would help free Indonesia's state-owned energy giant Pertamina's Rp 4.7 trillion (US$300 million) dividend that has been trapped in Venezuela.

Previously, during the US-Singapore climate partnership forum held over the last weekend, maritime affairs and investment minister Luhut Binsar Pandjaitan revealed that Pertamina's dividend worth $300 million that has been sitting in Venezuela for the past 3-4 years is now in the process of being transferred to Pertamina through the US.1 

The fund was unable to leave Venezuela due to the wide range of sanctions US imposed on the country, which includes limitation of financial transactions, just around the time French oil and gas company Maurel & Prom (M&P), a company in which Pertamina has held majority stake in since 2017, invested around US$ 400 million into oil fields in Venezuela.2 

As for the collaboration to combat climate crisis, President Biden reaffirmed US commitment for the Indonesia Just Energy Transition Partnership (JETP). There are nine climate-related programs announced, namely a Memorandum of Understanding (MoU) between the US Department of State and the Indonesia's Energy and Mineral Resources for sustainable energy, mini electricity transmission system for renewable energy, energy transition acceleration, carbon capture and storage (CCS) promotion, increasing electricity connectivity in ASEAN, improving air quality in Southeast Asia, exploring clean energy alternatives for industry, expanding partnership for waste management, and smart and sustainable development of the new capital city (IKN).3 

The US has been softening its stance regarding potential CCS development with Indonesia throughout the year. This can be seen in the Indonesia Just Energy Transition Partnership (JETP) initiative, of which the US is one of the co-leaders, which initially declined to fund CCS development at the start of this year.4 

Coordinating Minister Luhut also engaged John Kerry on the topic of Indonesia's investment potential for carbon capture and storage (CCS). According to data provided by coordinating minister Luhut, Indonesia's CCS potential could reach 400 gigatons through the use of depleted reservoirs and saline aquifers.5 

Moreover, Pertamina and US-based oil and gas giant ExxonMobil recently signed two agreements to advance the progress of carbon capture storage (CCS) projects along with the exploration of potential petrochemical complexes in Indonesia. The signing event of this agreement in Washington DC was also overseen by US President Joe Biden and President Joko "Jokowi" Widodo, signaling the approval of this venture by the two countries' leaders.6