Abadi Masela LNG Project Groundbreaking Marks Start of 28-Year Journey: Bahlil

Jakarta: Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia declared that the Abadi Masela Liquefied Natural Gas (LNG) National Strategic Project (PSN) has officially entered the construction phase with a groundbreaking ceremony held in Maluku.

The project, planned for 28 years, has finally been put into operation during the administration of President Prabowo Subianto.

Bahlil stated that the commencement of construction of the Abadi Masela LNG is an important milestone for the development of the national energy sector and opens a new chapter after the project was delayed for nearly three decades.

"Today, on July 16, 2026, we mark a new chapter. The Abadi Masela Project, which was initiated 28 years ago, has operated under six presidents. President Prabowo Subianto is the one who can execute it today," Bahlil said at the groundbreaking ceremony for the Abadi Masela LNG National Strategic Project (PSN) in Maluku on Thursday, July 16, 2026.

He revealed that one of the main causes of the project's delay was the long debate over the location of the gas processing facility, whether it would be built offshore or onshore. This debate had dragged on for years, hampering the realization of investment.

The President's firm directive for immediate execution

According to Bahlil, the government moved quickly after President Prabowo issued a directive that all oil and gas projects that had received Plan of Development (POD) approval but were not yet operational be immediately executed.

As a follow-up to this directive, the Ministry of Energy and Mineral Resources issued a warning letter to Inpex, the project manager, urging them to realize their investments immediately. Bahlil stated that this step has borne fruit with the commencement of construction of the Abadi Masela LNG project.

"Therefore, based on that, we sent the first warning letter to Inpex, and thank God, today we have broken ground for the next phase of construction," he said.

Bahlil assessed that the Abadi Masela LNG project will have a significant impact on the national economy. He emphasized that the successful start of the project's construction is the result of President Prabowo's support and the synergy of all stakeholders.

"This project has been underway since 1998, and it has had a significant impact on our economy. Thanks to the President's direction and support, as well as the synergy of all stakeholders, the Abadi Masela project has reached this important milestone today," Bahlil said.

Creates 12,000 Jobs

According to a study by the Institute for Economic and Social Research, Faculty of Economics and Business, University of Indonesia (LPEM FEB UI), the project is estimated to contribute approximately USD 137.7 billion to the national gross domestic product by 2055.

The project is also projected to create approximately 12,000 direct jobs during construction and increase state and regional revenues.

The government emphasized that the development of national strategic projects will continue to be carried out in a measured and sustainable manner to benefit the community.

Energy sector development is also directed at increasing national production, strengthening industry, expanding employment opportunities, stimulating regional economic growth, and improving public welfare.