Unlocking one of the largest offshore gas reserves in the Asia-Pacific region, Indonesia has launched an upstream megaproject of the Abadi Masela LNG Block National Strategic Project (PSN) in the Tanimbar Islands Regency, Maluku, Kontan reports.

Broadcasting live from the Presidential Palace on July 16, President Prabowo Subianto has officially declared the formal groundbreaking of the $20.9bn facility. The mega-infrastructure launch ends nearly three decades of exploration and planning gridlock since its initial 1998 contract signing.

Managed under a production-sharing contract (PSC) cost recovery matrix, the deepwater project is operated by Japan's INPEX Masela Ltd., which commands a 65% majority equity stake, alongside strategic state partners PT Pertamina (Persero) holding 20% and Malaysia's Petronas retaining the remaining 15%. Minister of State Secretary Prasetyo Hadi hailed the deployment as the largest single energy asset investment in the modern history of the Republic, explicitly designed to drive structural economic balance directly into the long-overlooked corridors of Eastern Indonesia.

The offshore gas field infrastructure utilises high-capacity floating production units located roughly 170 to 180 kilometres southwest of Tanimbar, sending gas straight into specialised liquefaction hubs. The project's industrial core is engineered to pump out 9.5mn tonnes of liquefied natural gas per annum (MTPA) to dominate regional export lanes, while simultaneously piping 150mn standard cubic feet per day (MMSCFD) directly into domestic pipelines to fuel local downstream industries.

Alongside the primary gas blocks, the extraction facility will capture an additional 35,000 barrels of liquid condensate per day to directly boost national petrochemical inputs. According to macroeconomic modeling by LPEM FEB UI, this massive extraction run is projected to inject a spectacular $137.7bn into the national Gross Domestic Product (GDP) between now and 2055, creating over 12,000 direct engineering and construction jobs during its peak building phases.

To insulate the giant extraction facility from emerging international carbon penalties and meet long-term green transition metrics, the operator is building a massive carbon capture hub directly into the core design. The physical construction kickoff of the Masela block introduces the primary structural transformations to Indonesia's regional macroeconomic layout.