Rp332 Trillion Investment, the Abadi Masela LNG Project is the Center of Indonesia's New Energy in the East

Illustration of offshore oil and gas drilling. (Xinhua via Antara)

JAKARTA - The Abadi Masela liquefied natural gas (LNG) project is officially projected to become one of the largest energy industry centers in eastern Indonesia. This strategic step is taken to strengthen national energy resilience while encouraging equitable development in the eastern region of Indonesia.

The Minister of State Secretary, Prasetyo Hadi, said that the groundbreaking ceremony for this project will be led directly by President Prabowo Subianto in the Tanimbar Islands Regency, Maluku, on Thursday. This moment marks the start of one of the largest energy investments in the history of the Republic of Indonesia.

"The presence of this project will also encourage the growth of supporting industries, expand business opportunities for MSMEs, and open up vast employment opportunities by prioritizing local labor from Maluku and Tanimbar Islands Regency," said Prasetyo in a written statement in Jakarta.

Fantastic Investment Value and Production Target

As one of the National Strategic Projects (PSN), the development of the Masela Block is being worked on by the INPEX Masela Ltd consortium together with PT Pertamina (Persero) and Petronas. The total investment value of this project is estimated to reach 20.9 billion US dollars (or around Rp. 332 trillion).

With the jumbo investment value, the Abadi Masela LNG facility is designed to achieve the following production capacity targets:

LNG: 9.5 million tons per year (MTPA) Domestic Pipeline Gas: 150 million standard cubic feet per day (MMSCFD) Condensate: About 35,000 barrels per day

After going through a long process for almost three decades since the signing of the contract in 1998, the project has finally officially entered the construction phase.

As of early July 2026, the progress of the front end engineering design (FEED) was reported to have reached 79.56 percent, surpassing the initial target planned. Various strategic permits and completion of the design of the main facilities continue to run according to schedule to pursue the final investment decision (FID) target by the end of 2026.

Environmentally Friendly Gas Project with CCS Technology

In addition to being a driving force for the economy, LNG Abadi Masela has made history as the first gas project in Indonesia to integrate Carbon Capture and Storage (CCS) technology from the early stages of development.

Prasetyo emphasized that the implementation of this carbon capture technology is a tangible proof of the government's commitment to developing a highly competitive energy sector, but still environmentally friendly to support the national energy transition.

Economic Impact: Contribute Trillions to GDP

Based on a study from the Economic and Social Research Institute of the Faculty of Economics and Business, University of Indonesia (LPEM FEB UI), the economic impact of this mega project is very significant. The Masela Block project is estimated to contribute up to 137.7 billion US dollars to the national Gross Domestic Product (GDP) by 2055.

In addition, this project is projected to absorb around 12,000 direct workers during the construction period, which will automatically increase state revenues and the welfare of the local community.

The government emphasizes that the development of the energy sector in the future will continue to be directed to increase national production, strengthen industrial downstream, and encourage sustainable economic growth throughout the country.