Japan's Inpex Commits to USD20 Billion Investment as Bahlil Accelerates Masela Project
The Indonesian Government has demonstrated serious commitment to ensuring the long-delayed Abadi Masela project proceeds after decades of postponement.
During a meeting with Japanese energy company INPEX leadership in Tokyo, Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia directly pressed for the massive gas project in the Arafura Sea to enter its final investment decision phase without further delays.
Bahlil’s meeting with INPEX Corporation CEO Takayuki Ueda on Sunday, 15 March (local time), represented an important opportunity to accelerate the project valued at USD20 billion, or approximately IDR339 trillion (at an exchange rate of IDR16,900 per US dollar). For the Government, the Masela project holds significant value as an economic driver for Eastern Indonesia and as a major gas supply source for domestic industry in the future.
Bahlil even expressed appreciation for the project’s progress, which has reached approximately 25 per cent completion. Recognising this significant advancement, Bahlil emphasised his desire for the Abadi Masela project to advance its Front End Engineering and Design (FEED) in the second quarter of 2026 or at the latest in the third quarter of this year, to enable concurrent Engineering Procurement Construction (EPC) tender processes.
“We want this to move quickly so there are no more delays. This has been 27 years—we can’t wait until I’m 60 years old for this to be completed. And besides, it’s my mother’s village. So I think we can all conduct the EPC tender this year,” Bahlil said at the meeting.
To achieve the FEED target, Bahlil offered INPEX the possibility that Abadi Masela field production, which reaches 9 Million Tonnes Per Annum (MTPA), could be purchased by Danantara if no serious international buyers have committed by the end of April 2026, including supply for downstream industrialisation programmes.
“To provide buyer certainty. I respect foreign buyers, but now Indonesia must step forward to work together with INPEX to ensure operations. So we will be the ones buying,” Bahlil stated.
Responding to the Energy Minister, INPEX Corporation CEO Takayuki Ueda also expressed his commitment to promptly completing the Abadi Masela project.
“Thank you very much, Minister, for your generosity and commitment to support this project. Because 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 already worked on Abadi for 12 years. It is not just you, Minister, but we also have the same commitment to promptly work on Abadi. And after discussing with you, Minister, we are even more motivated to accelerate completion of the Abadi project,” Ueda stated.
From an administrative standpoint, the project’s progress has become more robust with the completion of several crucial permits in early 2026. Environmental approval with the Environmental Impact Analysis (AMDAL) document was issued on 13 February 2026, following approval of forest area release by the Ministry of Forestry in January 2026. Full support from relevant ministries demonstrates the Government’s strong coordination in overseeing this massive investment to keep it on track.
Concluding the meeting agenda in Japan, the Energy Minister reiterated to INPEX the importance of consistently meeting the agreed-upon milestone targets. With accelerated bureaucratic processes and substantial investment commitments, Indonesia now looks optimistically towards developing a green energy hub in the Arafura Sea. The Abadi Masela project is no longer merely a paper proposal but a new engine of economic growth preparing to be activated.