Minister of Energy and Mineral Resources (ESDM) Pushes Masela Block US$20.9 Billion, Subsidized Fuel Prices Still Held English:

TOKYO - Energy and Mineral Resources Minister Bahlil Lahadalia went to Japan with two targets, namely accelerated energy transition investments and the Masela Block project immediately entered the implementation phase. The value of the giant oil and gas project is now said to reach US$20.9 billion and can still rise amid global geopolitical turmoil.

"At the direction of President Prabowo, I was assigned to do two things in Japan. First, ensure the acceleration of investment in the energy transition, the second is about the impact of the Masela Block," Bahlil told reporters in Japan, Monday, March 30.

According to Bahlil, the concession of the Masela Block has been held for 27 years, but the project has not yet been running. After intensive discussions throughout 2025, the project value now reaches US$20.9 billion. This figure already includes an additional US$1 billion for CCS, namely carbon capture and storage technology. With the current global situation, the investment value is said to still be able to increase to around Rp. 300 trillion more.

The government is now targeting the project to enter a more concrete phase. Bahlil said that in 2026 the EPC tender, which is the process of finding contractors for engineering, procurement, and construction of the project, will begin. Meanwhile, the final investment decision (FID) is targeted to be completed this year. According to Bahlil, the acceleration is important because Masela is one of the major oil and gas fields with a capacity of around 1,200 MM.

"If we are able to do this, then our energy resilience in the oil and gas sector will be stronger and at the same time make Indonesia one of the gas players in the world," he said.

Bahlil also opened the option for Masela gas to be absorbed domestically if the outside market was not certain. He said Danantara and PGN could enter to strengthen downstream.

Outside Masela, the government is also encouraging the development of non-fossil energy, from geothermal, water, solar, to wind. Geopolitical uncertainty, said Bahlil, makes Indonesia have to accelerate alternative energy sources.

When asked about the world oil price, which has touched US$115 per barrel, Bahlil has not given a final answer on subsidized fuel. However, he gave a signal that the government was still holding it.

"For subsidized fuel, up to now I think the President has a heart to pay attention to the little people," said Bahlil.

Regarding non-subsidized fuel, he emphasized that the price was indeed following the market according to the rules. Regarding the policy for subsidized fuel, said Bahlil, waiting for the President's decision.