Indonesia plans mutual gains from Abadi Masela LNG development

Jakarta (ANTARA) - Indonesian President Prabowo Subianto called for the optimal implementation of the Abadi Masela Liquefied Natural Gas (LNG) National Strategic Project, emphasizing that it should deliver equitable benefits for both the public and investors.

“As president of the Republic of Indonesia, entrusted by the nation, I reiterate that this project must be carried out to the fullest based on mutual benefit,” he said while virtually inaugurating the project's construction from the Merdeka Palace in Jakarta.

In a speech livestreamed by the Presidential Secretariat on Thursday, Prabowo expressed appreciation to Japanese energy company INPEX for its pivotal role in advancing the project, which has been in development for nearly three decades, and underscored the importance of a mutually beneficial partnership.

He described Indonesia as a reliable and trustworthy investment partner, assuring investors in the project of business certainty.

“Investors must earn profits. I repeat, as a dignified nation, we should be ashamed if our partners are dissatisfied, incur losses, or are not treated fairly,” Prabowo said.

At the same time, the president stressed that ensuring investors' profitability should not come at the expense of the government's responsibility to maximize the benefits of natural resource development for the Indonesian people.

He said Indonesia views the LNG project as a strategic instrument for transforming the country into a modern, industrialized, and productive nation.

"We aspire to stand on par with nations like Japan. We want to become a productive nation. We want to manufacture industrial products," Prabowo said.

The head of state expressed confidence that Indonesia has the human capital needed to achieve those goals, citing the country's increasingly capable and competitive workforce.

He delivered the speech alongside State Secretary Prasetyo Hadi, Foreign Affairs Minister Sugiono, Deputy Minister of Energy and Mineral Resources Yuliot Tanjung, and Cabinet Secretary Teddy Indra Wijaya.

A simultaneous groundbreaking ceremony was held at the project site in Tanimbar Islands District, Maluku Province.

The Energy and Mineral Resources Minister, Bahlil Lahadalia, National Development Planning Minister Rachmat Pambudy, and Agrarian Affairs and Spatial Planning Minister Nusron Wahid were among those in attendance at the site.

Indonesia's state-owned energy company Pertamina is developing the Abadi Masela LNG project in partnership with INPEX and Petronas through an investment of nearly US$20.9 billion, targeting annual production of 9.5 million metric tons of LNG.

The project is also expected to supply 150 million standard cubic feet of pipeline gas per day (MMSCFD) to the domestic market and produce approximately 35,000 barrels of condensate daily.

As of early July 2026, front-end engineering design (FEED) work had reached 79.56 percent completion, exceeding the planned target.

Strategic licensing processes and the completion of key facility designs remain on schedule ahead of the final investment decision, targeted for the end of 2026.

The government expects the Abadi Masela project to become a major energy hub in eastern Indonesia, supporting industrial development; expanding opportunities for micro, small, and medium enterprises (MSMEs), and creating jobs for local communities.

In addition to strengthening national energy security, the project will be Indonesia's first LNG development to integrate carbon capture and storage technology from the outset, supporting the national energy transition agenda.

Related news: Prabowo kicks off construction of Abadi Masela LNG project

Translator: F. Rochman, Tegar Nurfitra

Editor: Bayu Prasetyo

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