Indonesia Speeds Up Masela Block and Energy Transition with Japan's Investment

RRI.CO.ID, Tokyo – The visit by Indonesian President Prabowo Subianto to Tokyo, Japan, has resulted to concrete steps, particularly in the energy and downstream sectors. The main focus of the visit included the development of the Masela Block project and the acceleration of the national energy transition.

Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia, revealed that he received direct instructions from President Prabowo to ensure these two main agendas proceed optimally. Bahlil conveyed this during a press briefing in Tokyo, Japan, on Monday, March 30, 2026.

“Under President Prabowo’s direction, I was tasked with two objectives during this visit to Japan. The first is to ensure the acceleration of investments in the energy transition. The second concerns INPEX and the Masela Block,” Bahlil said.

He also explained that the Masela Block project, one of Indonesia’s largest gas producers, has finally seen the light at the end of the tunnel after a 27-year wait. The project has a Project Development Plan (POD) value of 20 billion US dollars, plus an additional 1 billion US dollars for carbon capture and storage (CCS) technology to make it more environmentally friendly.

Of the total investment of approximately Rp380 trillion coming from Japan, 95 percent is allocated to the energy and mineral resources sector. Bahlil emphasized that the President has given direct instructions for this strategic project to be implemented immediately starting in 2026.

“Well, our task now, my task as Minister of Energy and Mineral Resources, is that the President, in his instructions when I facilitated a meeting between the President Director of INPEX and the President, expressed the hope that this project can be implemented quickly,” he said.

In addition, Bahlil said Indonesia continues to promote the use of alternative energy. He noted that energy sources such as hydro, solar, and wind are being considered to reduce dependence on fossil fuels, given the current geopolitical situation.

“Indeed, we are currently pushing to utilize all the potential of other energy sources besides fossil fuels that we have. Why? Because with this geopolitical situation, we never know when it will end,” the minister said.

In addition to investment, Bahlil also highlighted the rise in global oil prices, which have reached USD115. The Minister of Energy and Mineral Resources explained that industrial fuel prices will follow market prices, but for subsidized fuel, the President will make a decision that takes the conditions of the general public into careful consideration.