Masela Block Project to Contribute USD37.8 Billion in State Revenue
The Masela Block LNG project is not only projected to become one of the largest gas projects in Indonesia, but is also expected to be a key driver of economic growth in the eastern region of the country.
Beyond supplying energy for national needs, the project is estimated to deliver substantial state revenue while opening up thousands of jobs.
President Prabowo Subianto has held the groundbreaking ceremony for the Abadi Masela LNG Project, located around 160 kilometres offshore from Yamdena Island in the Arafura Sea, Maluku.
The gas field, with potential reserves of up to 18.54 trillion cubic feet (TCF), is a National Strategic Project (PSN) with an investment value of around USD 20.9 billion, equivalent to Rp 352 trillion.
The project is designed to have a production capacity of 9.5 million tonnes of liquefied natural gas per year.
In addition, the Abadi Field will supply around 150 million cubic feet of gas per day for domestic industrial needs, as well as producing approximately 35,000 barrels of condensate per day.
Minister of Energy and Mineral Resources Bahlil Lahadalia affirmed that the majority of gas production from the Abadi Field will be prioritised to meet domestic needs in order to strengthen national industry.
“Of the gas produced later, at least 60 per cent will be used to meet domestic needs, while a maximum of 40 per cent will go to exports,” Bahlil said in Maluku on Thursday, 16 July 2026.
According to him, the domestic gas supply will serve as the foundation for downstream industrial development, including the fertiliser industry to be built in the area surrounding the project.
“Fertiliser will build a downstream industry here. Then some of the gas will also be channelled to PLN, PGN and several private companies. This step will simultaneously increase added value and drive the creation of economic value in the region,” Bahlil said.
Beyond strengthening national energy security, the government estimates the Abadi Masela Project will deliver significant economic and fiscal benefits to the state.
Over the period from construction through to operation, the project is projected to generate around USD 37.8 billion in direct state revenue.
Meanwhile, indirect tax contributions are estimated to reach approximately USD 6.43 billion.
Bahlil added that the project’s impact will also be felt through large-scale job creation. During the construction phase, the project is expected to absorb around 12,000 direct workers.