RRI.CO.ID, Saumlaki - The Abadi Masela Liquefied Natural Gas (LNG) project in the Tanimbar Islands Regency, Maluku, began construction on Thursday, July 16, 2026. Indonesian President Prabowo Subianto officially began the construction via video conference from the Merdeka Palace in Jakarta.

The project is expected to produce 9.5 million tons of LNG annually, with at least 60 percent of the output is allocated for domestic use, and up to 40 percent will be exported. Joint research by Universitas Indonesia and Universitas Pattimura in 2025 found that the project could contribute US$137.7 billion to Indonesia's economy and create 12,000 new jobs.

President Prabowo stressed that the project is critical to make Indonesia an advanced industrial country. Therefore, he appreciated the project launch, saying its potential could help support Indonesia's development.

"This is a very large investment, US$20.9 billion, nearly US$21 billion. It will produce over nine million tons of gas, condensate, and others," Prabowo said, as quoted by the country's Presidential Secretariat.

"This will greatly help the Indonesian nation carry out its development," he continued.

Prabowo urged that the project be carried out to the highest standards and for mutual benefit. He said it is "an honor for the host" to ensure that its partners are satisfied.

"But at the same time, we have a great responsibility to our people. We need this energy to carry out our nation's transformation," he said.

The Abadi Masela LNG project is being developed and operated by a consortium led by the Japanese company INPEX. Indonesia and Malaysia's state-owned companies, Pertamina and Petronas, respectively, hold minority stakes.

The project contract has been orginally signed in 1998. However, disputes over the refinery development scheme and the withdrawal of Shell as one of its major investors, among other factors, delayed its implementation.