Indonesian Political, Business & Finance News

Why Prabowo Did Not Attend the Masela Block Groundbreaking in Person

| Source: TEMPO_ID Translated from Indonesian | Energy

President Prabowo Subianto has apologised for being unable to attend the groundbreaking ceremony for the Abadi Masela liquefied natural gas (LNG) national strategic project (PSN) in person in the Tanimbar Islands Regency, Maluku. Prabowo stated that he still had several engagements in Jakarta.

Prabowo officiated the construction of the Abadi Masela LNG project via video conference from the Merdeka Palace in Jakarta. “I apologise, I originally wanted to attend in person, but due to various events at the centre that I could not leave, I was forced to attend via this video conference,” Prabowo said in his speech on Thursday, 16 July 2026.

The Head of State then conveyed his apologies to the people of Maluku for not yet being able to visit in person. For Prabowo, this is a debt that will be repaid as soon as possible. “This is certainly a debt I owe to the people of Maluku and those regencies. God willing, I will repay this debt in the not-too-distant future,” said the Chairman of the Gerindra Party.

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 (MTPA), channel 150 million standard cubic feet of gas per day (MMSCFD) for domestic needs, and produce around 35,000 barrels of condensate per day to support national energy requirements.

A study by the Institute for Economic and Social Research at the University of Indonesia’s Faculty of Economics and Business (LPEM FEB UI) estimates that the project will contribute approximately US$137.7 billion to the national gross domestic product (GDP) up to 2055. Furthermore, the project is predicted to increase state and regional revenues, create around 12,000 direct jobs during the construction phase, and have an impact on reducing 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 (CCS) technology from the development stage. “After a development process lasting nearly three decades since the contract was signed in 1998, this project has finally entered the construction phase,” said Minister of State Secretary Prasetyo Hadi in a statement on Thursday, 16 July 2026. As of early July 2026, the front end engineering design (FEED) progress had reached 79.56 percent, surpassing the planned target. Meanwhile, various strategic permits and the design of main facilities are continuing on schedule towards the final investment decision (FID) at the end of 2026.

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