Japanese Energy Company INPEX Confirms USD20 Billion Investment in Masela Project
The Indonesian government has demonstrated serious commitment to advancing the Masela Abadi project after decades of delays. During a meeting with Japanese energy company INPEX in Tokyo, Energy and Mineral Resources Minister Bahlil Lahadalia directly pressed for the massive gas project in the Arafura Sea to move towards a final investment decision without further delays.
The meeting between Bahlil and INPEX Corporation CEO Takayuki Ueda on Sunday, 15 March (local time), served as an important opportunity to accelerate the project, valued at USD20 billion or approximately Rp339 trillion (at an exchange rate of Rp16,900 per US dollar). For the government, the Masela project represents a new economic driver for eastern Indonesia and a major gas supply source for domestic industry in future years.
Bahlil praised the project’s progress, which has reached approximately 25 per cent completion. Recognising this significant advancement, Bahlil emphasised his desire for the Masela Abadi project to advance Front End Engineering and Design (FEED) by the second quarter of 2026, or at the latest by the third quarter of 2026, allowing parallel Engineering Procurement Construction (EPC) tendering to proceed.
“We want this to move quickly so it doesn’t drag on any longer. It’s been 27 years already; I don’t want to wait until I’m 60 years old for this to be completed. Besides, it’s in my mother’s region. So I think we can launch the EPC tender this year,” said Bahlil during the meeting.
To achieve the FEED target, Bahlil offered INPEX a proposal whereby Masela Abadi field production, reaching 9 million tonnes per annum (MTPA), could be purchased by Danantara if no serious international buyer has been secured by the end of April 2026, including supply for downstream processing programmes.
“To ensure buyer certainty. I appreciate foreign buyers, but Indonesia must now be present, working together with INPEX to ensure operations. So we ourselves will be the buyer,” said Bahlil.
In response, INPEX Corporation CEO Takayuki Ueda also expressed his company’s commitment to completing the Masela Abadi project quickly.
“Thank you very much, Minister, for your kindness and commitment to supporting this project. This is not just an issue for me personally, but the entire INPEX team is also committed to accelerating the realisation of Abadi. I have personally been working on this for 12 years. Not only does the Minister have this commitment, but we also share the same commitment to expedite the completion of the Abadi project. After discussing with the Minister, we are even more motivated to accelerate the completion of this project,” said Ueda.
Administratively, the project’s progress has become more solid with the completion of several crucial permits in early 2026. Environmental approval with an environmental impact assessment document was issued on 13 February 2026, following forest area release approval from the Ministry of Forestry in January 2026. Full support from relevant ministries demonstrates the government’s strong coordination in overseeing this major investment to keep it on track.
Closing the meeting agenda in Japan, the Energy Minister reminded INPEX to remain consistent in meeting agreed milestones. With accelerated bureaucracy and massive investment commitment, Indonesia is now optimistically looking towards developing a green energy hub in the Arafura Sea. The Masela Abadi project is no longer merely a proposal on paper, but a new engine of economic growth ready to be activated.