Indonesia launches US$20.9 billion Abadi Masela LNG Project

Jakarta (ANTARA) - The Abadi Masela Liquefied Natural Gas (LNG) project is expected to become one of the largest energy industry hubs in eastern Indonesia, strengthening national energy security while supporting more balanced regional development.

State Secretary Prasetyo Hadi said President Prabowo Subianto is scheduled to officiate the project's groundbreaking ceremony in Tanimbar Islands District, Maluku, on Thursday, marking the start of one of the largest energy investments in Indonesia's history.

"The project is also expected to stimulate the growth of supporting industries, expand business opportunities for micro, small, and medium enterprises (MSMEs), and create broad employment opportunities by prioritizing local workers from Maluku and Tanimbar Islands District," Prasetyo said in a statement received in Jakarta on Thursday.

The Abadi Masela LNG National Strategic Project (PSN) is being developed by INPEX Masela Ltd in partnership with Pertamina and Petronas, with an estimated investment of US$20.9 billion.

The project is designed to produce 9.5 million metric tons of LNG annually (MTPA), supply 150 million standard cubic feet of pipeline gas per day (MMSCFD) to the domestic market, and produce approximately 35,000 barrels of condensate per day.

Prasetyo said the project has entered the construction stage after nearly three decades of development since the production-sharing contract was signed in 1998.

As of early July 2026, the project's Front End Engineering Design (FEED) had reached 79.56 percent, exceeding its planned target.

Meanwhile, strategic licensing processes and the completion of key facility designs remain on schedule ahead of the Final Investment Decision (FID), which is targeted by the end of 2026.

In addition to strengthening national energy security, the Abadi Masela LNG project is Indonesia's first LNG project to integrate Carbon Capture and Storage (CCS) technology from the development stage.

According to Prasetyo, the adoption of the technology reflects the government's commitment to developing a competitive and environmentally sustainable energy sector to support Indonesia's energy transition.

A study by the Institute for Economic and Social Research, Faculty of Economics and Business, University of Indonesia (LPEM FEB UI) estimates that the project will contribute approximately US$137.7 billion to Indonesia's gross domestic product (GDP) through 2055.

The project is also expected to create around 12,000 direct jobs during the construction phase while increasing revenues for both the central and regional governments.

The government reaffirmed that the development of National Strategic Projects will continue to be carried out in a measured and sustainable manner to maximize benefits for the public.

The development of the energy sector is also aimed at increasing national production, strengthening domestic industries, expanding employment opportunities, promoting regional economic growth, and improving public welfare.

Related news: Indonesia to launch US$20 billion Abadi Masela Gas project in 2027

Related news: Indonesia taps eastern LNG to shield Java industry from cost hikes

Translator: Bayu Prasetyo

Editor: Primayanti

Copyright © ANTARA 2026