$20 Billion Masela Block Investment Signals Positive Progress for Giant Gas Project
JAKARTA – Parliamentary support for accelerating the development of the Abadi Gas Project in the Masela Block has strengthened. Yulisman, a member of the Indonesian House of Representatives (DPR) Commission XII from the Golkar Party faction, views the investment agreement with Japanese operator INPEX Corporation as a positive signal for realising this strategically important national gas project.
The investment value prepared for this project is estimated to reach $20 billion, equivalent to more than Rp 339 trillion, making it one of Indonesia’s largest upstream oil and gas projects.
“We welcome the government’s continued efforts to accelerate the development of the Masela Block,” said Yulisman in a statement issued in Jakarta on Monday, 16 March 2026.
“The investment agreement with INPEX valued at approximately $20 billion is a positive signal that this strategically important national project is moving closer towards realisation,” he added.
According to Yulisman, accelerating the project is important because the Masela Block has significant potential as a source of national gas supply in the future. The gas field is estimated to be capable of producing approximately 9 million tonnes of LNG per year, which can support energy needs whilst also supporting the development of domestic industry.
He views the government’s active communication with investors, including through a meeting between the Minister of Energy and Mineral Resources Bahlil Lahadalia and INPEX’s CEO in Tokyo, as an important momentum for driving the project towards Final Investment Decision (FID).
“Accelerating technical stages such as FEED and EPC tendering is crucial to ensure the project does not experience further delays,” said Yulisman.
“With progress continuing, we hope that the final investment decision can be reached soon so that the Masela project can make a real contribution to Indonesia’s energy security,” added the legislator from the Riau II electoral district.
He also views certainty in the market for gas to be produced from the Masela Block as an important factor for smooth investment. The government’s efforts to ensure domestic gas buyers are viewed as a strategic step to enable this significant investment to operate optimally.
Yulisman hopes that accelerating this project will not only strengthen the management of national gas resources but also increase the utilisation of domestic energy to support industrial growth and Indonesia’s long-term energy security.
“We will remove all obstacles you face in implementing this project,” said Purbaya during a Coordination Meeting on the Strategic National Onshore LNG Abadi Masela Project at the Ministry of Finance in Jakarta on Tuesday, 24 February 2026.
“They can report on this regularly whenever they wish. We will resolve it here,” he continued.
“Therefore, I will treat them as special investors.”
He cited the slow progress of the project thus far as being driven by complicated licensing procedures. However, in early 2026 several important permits began to be issued, including environmental permits and forest area release approvals for the construction of the onshore LNG refinery.