Bahlil Ensures Acceleration of Masela Block for National Energy Resilience

The government is preparing a domestic gas absorption scheme should the export market not yet be fully formed. Jakarta (ANTARA) - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has assured that the government is pushing for the acceleration of the development of the National Strategic Project, the Masela Block in Maluku. Bahlil stated that President Prabowo Subianto has provided directives for two main agendas during the working visit to Japan on Monday, namely accelerating energy transition investments and ensuring the continuity of the long-delayed Masela Block oil and gas (upstream) project. “The Masela Block has been under concession for 27 years, and we still remember the debates 5-10 years ago about whether it should be offshore or onshore. Following the President’s directive in 2025, we held intensive meetings and, alhamdulillah, the total project has been finalised at $20.9 billion USD,” said Bahlil in a statement received in Jakarta on Monday. He explained that the initial investment value of the Masela Block project reaches $20.9 billion USD, including additional carbon capture and storage (CCS) technology. However, global geopolitical dynamics could potentially increase the investment value to around Rp300 trillion during the implementation phase. “This year, in 2026, we will conduct the EPC tender, the FID (final investment decision) will also be completed, and we request it to be accelerated. Why must this be accelerated? Because this is one of the giant upstream producers at 1,200 MM. If we can achieve this, our energy resilience in the upstream sector will be even stronger,” explained Bahlil. He assessed that the development of the Masela Block will strengthen Indonesia’s position in the global gas sector while also enhancing domestic energy resilience. The government is also preparing a domestic gas absorption scheme should the export market not yet be fully formed. Bahlil proposed that the Masela production gas could be absorbed by Danantara through PT Perusahaan Gas Negara (PGN) to promote energy downstreaming. In addition to the upstream project, Bahlil emphasised that Indonesia continues to accelerate the energy transition agenda by optimising the potential of new and renewable energy sources such as geothermal, hydropower, solar, and wind. “We are pushing to utilise all the non-fossil energy potentials we have. Why? Because of this geopolitics, we never know when it will end. So, whether geothermal, water, sun, or wind, as long as there is efficient technology, we will promote it,” he added.