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The Future of Asia 2023

Pertamina's diversification slowed by Rosneft tie, carbon capture

Indonesian oil company plans $9bn capex in 2023, but 3% for decarbonization, others

Salyadi Saputra, Pertamina director of strategy and new ventures, speaks during an interview on May 26 in Tokyo. (Photo by Shinya Sawai) 

TOKYO -- Indonesian national oil company Pertamina's ambitious diversification plans are meeting major challenges in sanctions affecting its Russian partner Rosneft and difficulties in incentivizing carbon capture efforts, a senior company executive told Nikkei Asia.

Pertamina's $24 billion plan to develop a new refinery complex in the East Java town of Tuban with Rosneft, initiated in 2016, includes seven units to produce petrochemicals. It was supposed to enter a final investment decision phase this year, a senior Indonesian energy ministry official said in October, and was expected to play a major role in Pertamina's push away from the fossil fuel business.

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