Indonesian Political, Business & Finance News

Prabowo Wants Masela Block Project Completed in Short Time

| Source: TEMPO_ID Translated from Indonesian | Energy

President Prabowo Subianto has officially commenced the construction of the Abadi Masela liquefied natural gas (LNG) national strategic project, located in the Tanimbar Islands Regency, Maluku. This national energy project, which has been anticipated for nearly 28 years, has finally entered the construction phase. For Prabowo, the Abadi Masela LNG project is of great importance. “This project has been awaited for almost three decades. Three decades the people have waited. Alhamdulillah, today we begin its construction. And the construction must not be hindered. It must be completed in the shortest possible time,” Prabowo stated during a virtual address from the Merdeka Palace in Jakarta on Thursday, 16 July 2026. The Gerindra Party chairman said energy is one of the main prerequisites for a nation’s survival. According to Prabowo, Indonesia has been blessed with vast energy reserves, and this potential must be utilised to the fullest for the people’s benefit. “The Indonesian nation is aware that we have been given an extraordinary gift by the Almighty. The proof, among others, is that in our waters, in Tanimbar, in Maluku, we have very large energy reserves,” he said. On the same occasion, Prabowo expressed appreciation to the various parties who have contributed to realising this project, from international partners such as INPEX from Japan and Petronas from Malaysia, to Pertamina as the national company. The former Defence Minister under Joko Widodo stressed that cooperation with investors must be built on a mutually beneficial basis, while still favouring national interests and the welfare of the Indonesian people. “The investors must profit. Once again, as a nation with self-respect and honour, we are ashamed if our partners are not satisfied, if our partners lose money, if our partners are not happy. But conversely, we have a great responsibility to our people,” Prabowo said. The Abadi Masela LNG project is being developed by INPEX Masela Ltd. together with Pertamina and Petronas, with an investment value of approximately US$20.9 billion. The project is designed to produce 9.5 million tonnes of LNG per year, supply 150 million standard cubic feet per day of domestic piped gas, and yield approximately 35,000 barrels of condensate per day to support national energy needs. A study by the Institute for Economic and Social Research at the University of Indonesia’s Faculty of Economics and Business estimates the project will contribute approximately US$137.7 billion to the national gross domestic product by 2055. Additionally, the project is predicted to increase state and regional revenues, create around 12,000 direct jobs during the construction phase, and help reduce poverty and unemployment, particularly in Maluku Province. The Abadi Masela LNG project is also the first LNG project in Indonesia to integrate carbon capture and storage technology from the development stage. As of early July 2026, front-end engineering design progress had reached 79.56 percent, exceeding the planned target, while various strategic permits and the design of main facilities continue on schedule towards a final investment decision by the end of 2026.

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