Jakarta. Indonesia is losing patience with Japan’s Inpex Corporation over the long-delayed Masela gas project, warning that the government may revoke its license if development continues to stall.

Investment Minister Bahlil Lahadalia on Monday said the country is serious about reclaiming its energy independence and will take firm action against underperforming oil and gas contractors. Inpex, which holds a 65 percent stake in the Masela Block in Maluku, has yet to begin production more than two decades after it was first awarded the concession.

“I’ve issued a first warning letter,” Bahlil said at the 2025 Energy Mineral Forum at the Kempinski Hotel in Jakarta. “If they keep playing games, there will be a second. If nothing changes, we’ll revoke their license in the name of the state. This is serious.”

The Masela Block, located offshore near Nustual Island in the Tanimbar Islands, holds an estimated 1,600 million standard cubic feet per day (MMSCFD) of gas potential, enough to produce 9.5 million tons of LNG annually, as well as 35,000 barrels per day of condensate. Despite its vast reserves, the project has made little progress since being awarded in November 1998 under a 30-year production sharing contract, which has since been extended by 20 years.

The slow pace of development stands in the way of Indonesia’s energy ambitions. Bahlil recalled that in the mid-1990s, Indonesia was a net exporter of oil, producing as much as 1.6 million barrels of oil per day (BOPD) while consuming only around 500,000 BOPD. Oil and gas once contributed up to 45 percent of national revenue.

“Now, we’re producing only 500,000 to 600,000 barrels a day. That’s a drastic drop,” Bahlil said. He attributed the decline partly to the 1997 Asian financial crisis and regulatory shifts, but said the current reliance on imports reflects deeper systemic failures.

To address the situation, the Energy Ministry plans to optimize some 40,000 oil wells across the country, roughly half of which are currently idle. Contractors will be pressured to revive production, or face consequences.

“This government is committed to regaining Indonesia’s status as an energy powerhouse,” Bahlil said. “We were once known as the Asian Tiger. We will get there again.”

President Prabowo Subianto has already given Bahlil the green light to begin evaluating stalled projects and inactive oil and gas operators. The Masela Block is now co-owned by Pertamina and Malaysia’s Petronas, which acquired Shell’s 35 percent stake in July 2023.

This is not the first time a deadline has been floated. Bahlil’s predecessor, Arifin Tasrif, had urged operators to begin production no later than December 30, 2029.

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