TANIMBAR ISLANDS, INDONESIA / RankWire.AI / – Indonesia expects the Abadi Masela LNG project to generate about $37.8 billion in direct state revenue. Energy and Mineral Resources Minister Bahlil Lahadalia also projected $6.43 billion in indirect tax receipts. The government announced the figures after a July 16 groundbreaking ceremony in Maluku. Officials marked the event as the start of physical development for the $20.9 billion national strategic project. President Prabowo Subianto followed the ceremony online from Jakarta.
The government says construction could employ more than 12,000 people at its peak. It plans to reserve 30% of those jobs for workers from Maluku and the Tanimbar Islands. Operations could support 800 to 1,000 workers after production begins. Officials project a $137.8 billion contribution to Indonesia’s gross domestic product. They also forecast gains of $95 billion for Maluku and $92 billion for the Tanimbar Islands.
The Abadi gas field lies about 180 kilometers offshore Yamdena Island in the Arafura Sea. Water depths across the field range from 400 to 800 meters. The development plan covers subsea production systems, an offshore processing vessel, a 175-kilometer pipeline and an onshore LNG plant. It also includes carbon capture and storage facilities. Planned output includes 9.5 million tonnes of LNG annually and up to 35,000 barrels of condensate daily.
Domestic gas allocation anchors project plans
The Energy Ministry requires at least 60% of Masela gas output to serve Indonesia’s domestic market. Exports may take no more than 40%. Domestic allocations cover fertilizer production, electricity generation and downstream industries. The government has identified Pupuk Indonesia, PLN and PGN among potential users. The approved plan also provides 150 million standard cubic feet of pipeline gas each day. Officials placed the domestic allocation inside the field’s formal development plan.
INPEX holds a 65% interest and operates the Abadi Masela LNG project. Pertamina owns 20%, while Petronas owns the remaining 15%. The production-sharing contract runs through November 15, 2055. INPEX discovered the Abadi field in 2000, and Indonesia approved an onshore development plan in 2019. The government approved a revised plan with carbon storage in 2023. INPEX began front-end engineering work in 2025 and targets a final investment decision by the end of 2027.
Engineering work continues before investment decision
The groundbreaking followed more than two decades of planning after the field’s discovery. Indonesian officials described the ceremony as the formal start of physical construction. INPEX continues engineering work for the offshore vessel, subsea systems, export pipeline and onshore plant. Two consortia are conducting parallel design work for the offshore vessel and LNG plant. INPEX says this process will support contractor selection before the investment decision. Production remains targeted for the early 2030s.
The government has reserved a 10% participating interest for a company owned by Maluku Province. The field sits more than 12 nautical miles from the nearest island. The project framework also includes oil and gas revenue-sharing funds for the province. The Energy Ministry says development could support local businesses, infrastructure and workforce training. Studies cited by the ministry estimate construction employment will exceed 12,000 at peak. Indonesia’s fiscal projections remain government estimates as project preparations continue.