Abadi Masela LNG Project Breaks Ground After 28 Years, Bahlil Praises Prabowo
The groundbreaking of the Abadi Masela liquefied natural gas (LNG) project in the Tanimbar Islands, Maluku, has commenced. Minister of Energy and Mineral Resources Bahlil Lahadalia said the project was launched after being stalled for 28 years.
“Today, 16 July 2026, marks a new chapter for the Abadi Masela project, which was first conceived 28 years ago and has passed through six presidencies. It is President Prabowo Subianto who has been able to execute it today,” Bahlil said at the inauguration, as broadcast on the Presidential Secretariat’s YouTube channel on Thursday (16/7/2026).
Bahlil revealed that the project had stalled due to a prolonged debate over whether the facility should be located at sea or on land. Under the guidance and direction of President Prabowo, that debate was finally resolved and construction began this year.
“I must convey that this project has long hung in the balance, with a debate over whether it should be at sea or on land, and it was a very long-running dispute,” he said.
“But under the guidance, direction and orders given to us as the President’s aides to execute immediately, to provide assistance and to give certainty to all the oil and gas concessions that had been granted — those whose plans of development had been completed but could not be implemented — we were instructed to act swiftly. On that basis, we issued the first warning letter to the investor, and thank God, today we are holding the groundbreaking for the next phase of construction,” he said.
The giant oil and gas project is located approximately 170–180 km south-west of Tanimbar Islands Regency. It is being developed under a cost recovery PSC scheme by INPEX Masela Ltd as operator with a majority shareholding (65%), in strategic partnership with PT Pertamina (Persero) (20%) and Petronas (15%). The project’s investment value reaches USD 20.9 billion.
The project is designed to produce 9.5 million tonnes of LNG per year (MTPA), deliver 150 MMSCFD of gas via domestic pipelines, and yield around 35,000 barrels of condensate per day to support national energy needs.
After a development process spanning nearly three decades since the contract was signed in 1998, the project has finally entered the construction phase. As of early July 2026, progress on the front end engineering design (FEED) had reached 79.56 per cent, exceeding the planned target, while various strategic permits and the completion of major facility designs continue on schedule towards a final investment decision (FID) at the end of 2026.
A study by LPEM FEB UI estimates the project will contribute around USD 137.7 billion to national gross domestic product (GDP) by 2055. It is also expected to increase state and regional revenues, create around 12,000 direct jobs during construction, and have a positive impact on reducing poverty and unemployment rates, particularly in Maluku Province.
Beyond strengthening national energy security, Abadi Masela LNG is also the first LNG project in Indonesia to integrate carbon capture and storage (CCS) technology from the development stage. This step demonstrates the government’s commitment to developing an energy sector that is competitive while being more environmentally friendly, in support of the national energy transition.