Land Speculators Emerge in Masela Gas Project, Bahlil Issues Warning

Maluku, CNBC Indonesia — Energy and Mineral Resources Minister (ESDM) Bahlil Lahadalia has acknowledged the emergence of land speculators, or land ‘cukong’, in the area of the Abadi Gas Field project in the Masela Block, Tanimbar Islands, Maluku.

As a result, he has asked SKK Migas to differentiate its treatment of original landowners from parties who only bought land after the project got under way.

Bahlil explained that there are at least three categories of land ownership in the Masela Block project area.

“I know there are abuleke here (a local term for speculators or cukong). I divide them into three classifications. The first are those who genuinely own land that has been passed down through generations. The second is land owned by residents who perhaps needed money for their children’s education and sold it to local people. The third are those who sold land to others just as this project was about to start,” he said after the groundbreaking ceremony for the Abadi LNG Project in the Masela Block, Tanimbar Islands, Maluku, Thursday (16/7/2026).

“I have already asked SKK Migas to treat them differently. That is what you mean, isn’t it? So we must not sell primary rights to those who do not hold primary rights. That is the philosophy of it,” Bahlil asserted.

As is known, President Prabowo Subianto has just officially inaugurated the groundbreaking ceremony for the construction of the ‘giant’ Abadi Field gas project in the Masela Block, Tanimbar Islands, Maluku, Thursday (16/7/2026).

President Prabowo officiated virtually from the State Palace in Jakarta, while a number of officials — including Energy and Mineral Resources Minister Bahlil Lahadalia, Minister of Agrarian Affairs and Spatial Planning Nusron Wahid, Head of the Presidential Staff Office Dudung Abdurachman, Head of SKK Migas Djoko Siswanto, and Regent of the Tanimbar Islands Ricky Jauwerissa — attended in person at the site in the Tanimbar Islands, Maluku.

The event was also witnessed directly by CEO of Inpex Corporation Takayuki Ueda. Inpex is the operator and majority Participating Interest (PI) holder in the Masela Block, at 65%.

President Prabowo expressed his gratitude that, after nearly three decades of waiting, the National Strategic Project (PSN) has finally begun construction.

“Nation-building is a nation’s hard work, a very long journey that requires unity among all elements. Thus this Abadi Masela national strategic project is a truly very important project,” he said.

“We waited nearly three decades, three decades for this project. Three decades, three eras the people waited. Thank God today we begin construction, and the construction must not be obstructed — it must be completed in the shortest possible time,” he said.

“We have all the resources for it, and the capacity of our children is no less intelligent than others. I have planned and seen a real plan. We are determined to become an industrial nation, a modern nation. We are determined that our people live well. We need money to provide good healthcare, to pay teachers’ salaries so our schools are on a par with those abroad, to pay all our civil servants, and to build the vital infrastructure for modern life,” he explained.

“Therefore this project is important. I appreciate its commencement. As mentioned, this is a large investment of US$20.9 billion, almost US$21 billion, which will produce more than 9 million tonnes of gas condensate and so on, so this will greatly help Indonesia carry out its development,” he added.

“We must pursue downstreaming, and downstreaming requires energy. We have abundant energy — only 2-3 years of transition. And amid a world full of dangers, Indonesia fortunately has sufficient resilience, anticipation, and steps to keep Indonesia in a good state,” he said.

“I am confident this project will become a driver of Indonesia’s progress, especially eastern Indonesia. It will also strengthen Indonesia’s national energy independence and is an important milestone for the welfare of the Indonesian people,” said Prabowo.

“Therefore I once again say thank you to the people of Tanimbar, the people of Maluku. I apologise for not being physically present, but I have visited Pulau Moa in the Southwest Islands twice, and I hope Pulau Moa already has sufficient clean water points for the people of Moa,” he said.

“Thus, saying bismillahirrohmanirrohim, Thursday, 16 July 2026, by the grace of God Almighty, I, Prabowo Subianto, President of the Republic of Indonesia, declare the groundbreaking of the Abadi Masela LNG PSN officially commenced. Thank you,” he concluded.

Profile of the Masela Block

When giving a report on the Masela Block project, Energy Minister Bahlil Lahadalia explained that the project began 28 years ago and has been handled by six Indonesian presidents. However, only under President Prabowo’s administration could this ‘giant’ gas project be executed.

“Today, on 16 July, we mark a new chapter of the Abadi Masela project, which was initiated 28 years ago. There have been six presidents, but only President Prabowo Subianto could execute it today,” Bahlil said in his report at the Masela Block groundbreaking ceremony in the Tanimbar Islands, Maluku, Thursday (16/7/2026).

“I must tell the President that this project was long left hanging in a debate between offshore and onshore development, a long-running debate. But on the President’s guidance and directive to execute quickly, and to give certainty over all oil and gas concessions whose Plans of Development had been approved but not implemented, we issued a first warning letter to Inpex,” Bahlil said.

“And thank God today we carry out the groundbreaking,” he concluded.

Bahlil said the investment in this ‘giant’ gas project is estimated at US$20.95 billion, equivalent to around Rp 390 trillion.

“Mr President, we report that with this groundbreaking, work begins first with 11 development wells plus 4 subsequent wells; second, construction of various facilities including a port and jetty. The EPC is already under way, and this investment is roughly US$20.95 billion, equivalent to nearly Rp 390 trillion. It will produce 9.5 million tonnes of LNG per year and 35,000 barrels of condensate per day,” he explained.

For the record, Inpex Masela Ltd holds the largest Participating Interest (PI) in the Masela Block, at 65%.

Previously, Inpex was partnered by Shell Upstream Overseas Services with a 35% stake. However, Shell decided to withdraw from the Abadi gas project located in Maluku.

Shell’s 35% stake was taken up in July 2023 by PT Pertamina Hulu Energi through its subsidiary PT Pertamina Hulu Energi Masela (PHE Masela) with 20%, and Petronas with 15%.

The sale and purchase agreement for Shell’s Participating Interest to Pertamina and Petronas was signed on 25 July 2023, and the Energy Minister’s approval for the PI transfer was obtained on 4 October 2023.

The Abadi Field in the Masela Block is a deep-sea gas field with Indonesia’s largest gas reserves, located about 160 kilometres off Yamdena Island in the Arafura Sea at sea depths of 400-800 metres. The gas potential of the Abadi Field is estimated at 6.97 trillion cubic feet (TCF) of gas.

After the production sharing contract was signed in 1998, Inpex discovered the jumbo gas reserves in the Masela Block in 2000.

Nineteen years later, the Indonesian Government finally granted approval of the first Plan of Development (PoD-I) to Inpex to produce 9.5 million tonnes of LNG per year (MTPA), equivalent to 1,200 MMSCFD from the Masela LNG plant, and to produce 150 million standard cubic feet per day (MMSCFD) of piped gas, plus 35,000 barrels per day (bpd) of condensate.

The development of this green field (new oil and gas field), which carries high complexity and risk — encompassing deep-water drilling, subsea facilities, an FPSO (Floating Production Storage and Offloading) vessel, and an onshore LNG plant — will be both a challenge and a major opportunity for PHE and its partners to realise it. The field’s development also has the potential to absorb up to 10,000 workers.

The Masela Block is also planned to produce clean energy through the application of Carbon Capture and Storage (CCS) technology, in support of the Government’s programme to reduce carbon emissions and promote sustainability during the energy transition era.

The application of CCS was approved by the Indonesian Government on 28 November 2023 through Revision 2 of PoD-I. This was followed by an FEED tender process, until Inpex finally launched this OLNG FEED on Wednesday, 9 April 2025.