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[BUSINESS] · Indonesia · 9 sources

Indonesia’s Masela LNG Project Breaks Ground in Maluku

President Prabowo Subianto inaugurated the groundbreaking of the LNG Abadi Masela (Blok Masela) project in the Tanimbar Islands of Maluku on 16 July 2026, conducting the ceremony via video link from the presidential palace. The strategic‑national project involves an investment of about US $20.9 billion (around Rp 376 trillion) and is operated by Inpex Masela Ltd (65 % stake) together with PT Pertamina Hulu Energi Masela (20 %) and Petronas Masela (15 %).

The development targets annual production of 9.5 million tonnes of liquefied natural gas, 150 million standard cubic feet per day of pipeline gas and 35 000 barrels per day of condensate, with roughly 60 % of LNG earmarked for export and the remainder for domestic use. Construction is expected to create about 12 000 direct jobs and generate fiscal revenue of US $37.8 billion plus indirect taxes of US $6.43 billion. The project, delayed for nearly three decades and spanning six presidential terms, also incorporates carbon‑capture‑and‑storage technology as part of Indonesia’s energy‑transition strategy, with production slated to begin in 2029‑2030.