JAKARTA — Indonesia has launched the US$20.9 billion Abadi Masela liquefied natural gas (LNG) project, marking the start of construction on one of the country's largest energy developments after years of delays, as the government seeks to strengthen energy security and expand investment in its eastern region.
President Prabowo Subianto officially inaugurated the groundbreaking through a virtual ceremony from the Merdeka Palace in Jakarta on July 16, while a simultaneous ceremony was held at the project site in the Tanimbar Islands, Maluku, attended by senior government officials, including Energy and Mineral Resources Minister Bahlil Lahadalia.
The National Strategic Project is being developed by INPEX Masela Ltd in partnership with Indonesia's Pertamina and Malaysia's Petronas. According to the government, the project carries an estimated investment value of US$20.9 billion and is designed to produce 9.5 million metric tons of LNG annually, supply 150 million standard cubic feet of pipeline gas per day to the domestic market, and produce around 35,000 barrels of condensate per day.
Government officials said the project has entered the construction phase after nearly three decades since the production-sharing contract was signed in 1998. State Secretary Prasetyo Hadi said the development is expected to strengthen national energy security, support economic growth in eastern Indonesia, create employment opportunities with priority for local workers, and stimulate supporting industries and small businesses.
Authorities said engineering work and key permitting processes remain on schedule ahead of a targeted final investment decision later in 2026. Officials also said the Abadi Masela project will be Indonesia's first LNG development to incorporate carbon capture and storage technology from the outset. Further project milestones are expected as construction progresses.
