Finance Minister Holds Two-Hour Meeting with Inpex on Mega Gas Project, Here are the Results
Finance Minister Purbaya Yudhi Sadewa held a nearly two-hour meeting with the management of Inpex Masela Ltd and the Special Task Unit for Upstream Oil and Gas Activities (SKK Migas) on Tuesday, 24 February 2026, to discuss accelerating the Abadi Gas Field project, Block Masela, in the Arafura Sea, Maluku, operated by Inpex Masela Ltd.
Purbaya, who also chairs the Debottlenecking Task Force, stressed that the mega gas project worth nearly US$21 billion, or approximately Rp352 trillion, must not face further delays after years of slow progress.
Purbaya acknowledged that the Masela project had been ongoing for quite some time and had previously been hampered by various licensing issues. However, recent progress shows advancement, with environmental impact assessment (AMDAL) approval issued by the Ministry of Environment and the AMDAL document handed to Inpex by the ministry on Friday, 20 February 2026.
Purbaya reaffirmed the Indonesian Government’s commitment to honouring Inpex’s upstream oil and gas contracts for the Abadi Gas Field, Block Masela operations.
“I want to emphasise that Indonesia never changes regulations and contracts that have been signed. We always respect our contracts and obligations,” Purbaya told Inpex representatives during the National Strategic Project Coordination Meeting on Onshore LNG Abadi Masela that he chaired at the Finance Ministry on Tuesday, 24 February 2026.
However, Purbaya explained that the government could still issue new regulations of a general nature for national policy interests. In some cases, such rules could have indirect impacts on ongoing projects.
“However, perhaps at some point we might create certain rules or regulations. This is not intentionally affecting your contract, but because of interconnected impacts, it might affect your contract,” Purbaya said.
Should such situations arise, Purbaya requested investors to immediately coordinate with the government so adjustments can be made without disrupting investment certainty.
“Tell us if that happens. We will adjust. But we never violate the sanctity of contracts. That is very important for investment trust in this country. So, do not be afraid,” he said.
He also ensured that all regulatory obstacles at the government level would be removed. For example, if there are obstacles from other ministries or agencies, he would immediately call them together and resolve the matter in one meeting.
“So if there are disruptions or obstacles to investment permits, we call the Investment Ministry here. If it is about trade, we call the relevant import authority here. If it is about industry, we call the industry ministry here,” Purbaya said.
To ensure the project does not stall again, Purbaya requested the formation of a special task force so that Inpex could report obstacles on a regular basis.
“They can report that way. We will analyse it at the Finance Ministry. But the analysis will be quick. So if domestically there is nothing, then we go overseas,” Purbaya said.
Additionally, Purbaya also requested that the target for the Block Masela project to become operational (onstream) be realised before 2029. Inpex had previously stated its operational target for the project was around 2030–2031.
“So the gas will be producing. We will accelerate it as much as possible. So I can only provide support. What is clear is that we will remove all obstacles on the government side,” Purbaya said.
Similarly, regarding gas pricing, Purbaya emphasised that the gas price from Block Masela should be competitive for industry.
“Can we not find a good schedule and scheme going forward, so that domestic industry can enjoy it at a more competitive price? That is something SKK should think about later, right?” he said.
SKK Migas Head Djoko Siswanto stated that in the Block Masela Plan of Development (PoD), the pipeline gas price from Block Masela is estimated at US$6.8 per MMBTU. However, for liquefied natural gas (LNG), he noted that LNG would be allocated 40% for the domestic market and 60% for the export market. The LNG selling price, based on the PoD, he said is set at 13.5% of the Indonesian crude oil price (ICP).
For domestic gas buyers, Inpex has already signed initial agreements or Heads of Agreement (HoA) with several companies, including PT PLN (Persero), PT PGN Tbk, and PT Pupuk Indonesia. However, these HoAs are still non-binding.
“For Pupuk, PLN, PGN, we already had HoA last year but non-binding. So it has been a year, we hope this year we can have a Gas Sales and Purchase Agreement,” Siswanto said. “Regarding price, in the PoD for pipeline gas it is US$6.8 per MMBTU.”
Inpex Requests Incentives
During the meeting, INPEX Masela Ltd Project Director Jarrad Blinco also requested government support for implementing the LNG Refinery project for Block Masela. This support includes the Engineering, Procurement, Construction and Installation (EPCI) work stage.
Jarrad initially reported that the Block Masela project showed significant progress. With strong support from SKK Migas, several important milestones have been achieved, including AMDAL approval.
“Field work is expected to begin soon after completion of local community compensation,” he said.
He also stated that the Front End Engineering Design (FEED) stage and related activities are currently proceeding well. The FEED itself is currently targeted to be obtained in June 2026.
Moving into the EPCI stage, INPEX believes government support is needed to facilitate project implementation. Several matters expected by INPEX include the following:
Relaxation of domestic content level (TKDN) requirements
Use of overseas fabrication shipyards
Simplification of import processes
[incomplete list in original]