Prabowo Breaks Ground on $21 Billion Abadi Masela Project

President Prabowo Subianto officiated the groundbreaking ceremony for the Abadi Masela liquefied natural gas (LNG) project on July 16, 2026, in the Tanimbar Islands District, Maluku. The development follows nearly three decades of delays since the initial production-sharing contract was signed in 1998. Subianto stated that construction must not be obstructed and must be completed as quickly as possible to support the nation's energy needs.

The project involves an estimated investment of US$21 billion and is a joint venture between Japan's INPEX Masela Ltd, Indonesia's Pertamina, and Malaysia's Petronas. It is designed to produce 9.5 million metric tons of LNG annually, along with 35,000 barrels of condensate per day and 150 million standard cubic feet of pipeline gas for the domestic market. This is the first Indonesian LNG project to integrate Carbon Capture and Storage technology.

Energy Minister Bahlil Lahadalia detailed a plan to allocate 60 percent of the gas output for domestic needs, prioritizing downstream industries such as fertilizer production, while the remaining 40 percent will be designated for export. A Final Investment Decision is targeted by the end of 2026, with full production expected to begin around 2029 or 2030.