Indonesia's state energy firm PT Pertamina said that it has signed a joint study agreement with Japan's Mitsui & Co Ltd for commercialization of carbon capture, utilization and storage (CCUS) in the central Sumatra region.

The two companies would also explore the possibility of a long-term partnership in decarbonization and transitioning into clean technology, Pertamina said in a statement.

CCUS development is one of Indonesia's strategies towards reaching net zero emissions by 2060.

The study aims to find the best technology for CCUS in Sumatra, plus the potential for carbon intake from the nearby areas and the most efficient means of transportation for storage, the statement added.

"In the era of energy transition, Pertamina and other industries must make every effort to reduce and mitigate carbon emissions into the atmosphere in order to keep climate change under control," Pertamina director Iman Rachman said.

Regulatory support from the government would be a key factor in the study's success, he added.

Yasuchika Maruyama of Mitsui's Sustainable Energy Development Division in the statement said he hoped the two companies could develop a cost-effective CCUS project in Indonesia based on their experience in previous projects.

The governments of Japan and Indonesia in January agreed to cooperate on decarbonization technology such as hydrogen, ammonia and carbon capture and storage (CCS), to transition to clean energy.