Indonesia expects $37.8 billion revenue from Masela LNG project

Abadi Masela Project is projected to deliver significant economic and fiscal benefits

Tanimbar, Maluku (ANTARA) - Indonesia expects to generate about US$37.8 billion in direct state revenue from the newly launched Abadi Masela Liquefied Natural Gas (LNG) project, Energy and Mineral Resources Minister Bahlil Lahadalia said on Thursday.

Speaking at the project's groundbreaking ceremony in Tanimbar Islands Regency, Maluku, Lahadalia said the National Strategic Project was expected to deliver significant economic and fiscal benefits.

"The Abadi Masela Project is projected to deliver significant economic and fiscal benefits, including increasing state revenue with estimated direct government income of around US$37.8 billion," he said.

The government also expects the project to contribute about US$6.43 billion in indirect tax revenue, Lahadalia added.

He mentioned the project will also have a substantial impact on employment. During the construction phase, it is expected to create around 12,000 direct jobs. Once the operations begin, the Abadi Masela gas field is expected to employ approximately 800 to 1,000 workers.

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The gas field, estimated reserves of 18.54 trillion cubic feet (Tcf) and is one of Indonesia's National Strategic Projects.

The project carries an estimated investment value of US$20.9 billion.

The government hopes the project will become a new driver of economic growth in eastern Indonesia through investment, job creation, and downstream industrial development.

The project is designed to produce 9.5 million metric tons of LNG annually. It is also expected to supply about 150 million standard cubic feet of gas per day to domestic industries and produce around 35,000 barrels of condensate per day.

Lahadalia said the project would strengthen Indonesia's energy security while generating broader economic benefits through industrial development, higher state revenue, and improved welfare in Maluku and surrounding areas.

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Translator: Putu Indah, Kuntum Khaira

Editor: Fransiska Ninditya

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