Indonesian Government and INPEX Agree on 20 Billion Dollar Investment to Accelerate Masela Project
Energy and Mineral Resources Minister Bahlil Lahadalia has affirmed that the government is accelerating completion of the Abadi Field natural gas project, Masela Block, Maluku, following an agreed investment in the megaproject valued at 20 billion US dollars.
According to Bahlil, in his statement in Jakarta on Monday, the government is serious about ensuring the Abadi Masela project proceeds after decades of delays.
During his meeting with INPEX Corporation CEO Takayuki Ueda in Tokyo, Japan on Sunday (15 March 2026), Energy Minister Bahlil directly emphasised that the massive gas project in the Arafura Sea should immediately enter the final investment decision phase and not be further prolonged.
The meeting represented an important opportunity to drive acceleration of the 20 billion dollar project, equivalent to 339 trillion rupiah.
For the government, Bahlil continued, the Masela Project holds significant value as an economic driver for eastern Indonesia and a major source of gas supply for the national industry in the future.
He appreciated the project’s development progress, which has now reached approximately 25 per cent.
Viewing this significant progress, Bahlil expressed his desire for the Abadi Masela project to advance front-end engineering and design (FEED) activities in the second or at the latest the third quarter of this year, so that engineering, procurement and construction (EPC) tendering can proceed in parallel.
“We want this to move quickly so it is not delayed further. This has already been 27 years; do we want to wait until I am 60 years old before it is finished? And this is my mother’s village. So I think we could tender for EPC this year,” Bahlil said at the meeting.
To achieve the FEED target, Bahlil offered INPEX the opportunity to sell the Abadi Field’s production, which reaches 9 million tonnes per annum (MTPA). If no serious buyer emerges by the end of April 2026, Danantara should purchase it, including to meet the downstream programme supply needs.
“So there is certainty regarding the buyer. I appreciate foreign buyers, but at the moment, the Indonesian nation must be present to work together with INPEX to ensure operations. So we (Danantara) will buy it ourselves,” Bahlil said.
Responding to the Energy Minister’s statement, Takayuki Ueda conveyed INPEX’s commitment to promptly complete the Abadi Masela project.
“Thank you very much, Minister, for your kindness and commitment to supporting this project. Because this is not only my personal issue, but INPEX’s team also has the commitment to accelerate the realisation of Abadi, including that I myself have been working on Abadi for 12 years. Not only you Minister, but we also have the same commitment to quickly work on Abadi. And after discussing with you Minister, we are even more motivated to accelerate completion of the Abadi project,” Ueda said.