Masela Block Construction Begins: A Big Leap for Energy Security and the Well-Being of East Indonesia

Illustration. (Photo: Dok. Antara)

JAKARTA - The start of the post-groundbreaking phase of the National Strategic Project (PSN) of the Abadi Gas Field in the Masela Block in July 2026 marks a new chapter for the eastern part of Indonesia. With a giant investment of 20.9 billion US dollars, this project is believed to not only strengthen national energy resilience, but also provide measurable economic impact for local communities, especially for the Tanimbar Islands, Maluku Province.

The Masela block is one of the largest upstream oil and gas fields in Indonesia operated by INPEX Masela Ltd. together with partners PT Pertamina Hulu Energi and Petronas Masela. The project holds 18.54 TCF gas reserves and is designed to produce 9.5 million tons of LNG per year, 150 MMSCFD of pipeline gas for domestic needs, and 35,000 barrels of condensate per day.

Welcoming this crucial phase, the Tanimbar Islands Regency Government moved quickly to prepare its people so that they would not just be spectators. The Regional Secretary (Sekda) of the Tanimbar Islands Regency, Brampi Moriolkosu said that the community is very hopeful that this project will soon be operational because it will greatly help in driving the local economy.

"We, the Regional Government, are currently conducting an inventory of small and medium enterprises (SMEs), farmers' groups, and livestock groups. For inactive SMEs, we activate them and then we provide assistance to prepare them to be able to contribute to this national strategic project," he told reporters, quoted, Tuesday, August 11.

Not only that, his party is also preparing to cooperate with the private sector to prepare local workers. In terms of supporting infrastructure, Brampi explained that the current focus of the local government is to prepare office buildings and build access roads and bridges. Through collaboration with the central government, a fairly long road access is being opened so that people on the smallest islands can easily connect to the city center.

In the future, Brampi has high hopes for the synergy of central government programs and several parties involved.

"The Central Government in implementing priority programs can collaborate with the Regional Government so that it can meet the needs in the region. If for INPEX and SKK Migas, collaboration can also be carried out through CSR programs," he explained.

Member of Commission XII of the House of Representatives of the PDIP Faction, Bambang Wuryanto emphasized that the Masela Block is a new milestone that will revive the economy in the East of Indonesia massively.

"Will it generate the economy in the eastern region? Yes of course. Because this is onshore, Nustual Island which is the location of the port and refinery can be a new city," he said.

In terms of labor absorption, Bambang noted that this project will involve 10,000 to 15,000 workers during the peak construction season. He is optimistic that local engineers and workers are able to take an important role through continuous training.

"It will definitely be possible later with training. Our workforce will be absorbed there. I am optimistic about it. This is a really great project; we haven't had a really great gas project after Tangguh for a long time," he explained.

The Masela block, often dubbed the "enduring project" because of its long operating life, also plays a crucial role in national energy security. Bambang appreciated the commitment to share the results that prioritize domestic interests, such as the success of the Bontang LNG refinery.

"In the POD (Plan of Development) it is clear that 40% of the production from Masela will be used to meet the energy needs in the country," he added.

Regarding the implementation of green technology, Bambang welcomed the application of carbon capture in the Masela Block as a right step to meet global environmental standards. To ensure the smooth running of all these targets, the DPR is committed to carrying out measurable supervision.

"Later we will ask the SKK for the breakdown, the Work program and budget (WP&B) we ask for. Supervision is through that," he said.

Energy observer and Senior Lecturer at Darma Persada University, Riki F. Ibrahim, assessed that the start of this physical construction requires a shift in priorities from mere licensing matters to local impact management. According to him, risk mitigation is now very crucial, especially in controlling regional inflation, suppressing land price speculation, and maintaining harmony between local workers and immigrants.

At the peak of physical construction, Riki projected that the project would absorb 10,000 to 15,000 workers, in line with the government's initial estimates.

"This investment of US$ 20.94 billion is a game changer that will drive the equalization of the national economy (east-centric growth). Maluku has the potential to transform from an agricultural-based archipelago region into a new energy industry hub in the Eastern Indonesia Region," he said.

Regarding the management rights of the Participating Interest (PI) of 10 percent which was given to the Regional Owned Business (BUMD), Riki gave an important note. He reminded the Regional Government to ensure that BUMD is filled by pure professional personnel (non-political appointment) in the oil and gas sector.

"Then the Regional Sovereign Wealth Fund by Forming a Regional Endowment Fund (endowment fund) so that oil and gas revenues are not exhausted for routine operational costs, but are invested in productive sectors such as education, health, and infrastructure for the long term," he explained.

The Masela block also has a strategic role in maintaining energy security amid declining oil and gas production in the western region. The allocation of 40 percent of gas production for domestic use will be the main support (backbone) for national gas supply. This secures the supply of PLN electricity, fertilizer raw materials for food security, and PGN industrial gas supply.

In addition, the Masela project design that integrates Carbon Capture and Storage (CCS) technology is considered to be on the right track. Riki said this step makes Masela a low-emission pioneer project that meets global Environmental, Social, and Governance (ESG) standards, while increasing Indonesia's gas competitiveness in the international market.

Riki also hopes that SKK Migas, INPEX, and the central government will be consistent in implementing transparency of the Domestic Component Level (TKDN) quota. Then, maximize the absorption of local labor, provide a structured technology transfer program.

"From the certainty of regulations, escorting project governance consistently so that the on-stream schedule is on time without bureaucratic obstacles," he concluded.