Jakarta Losing Patience with Inpex over 26-Year Masela Gas Block Delay
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.
Tags: Keywords:Related Articles
Kalimantan's $891 Million Offshore Gas Projects Set to Boost Production by Nearly 65%
"With existing production in the area currently at 450 MMSCFD, we expect total output to reach 750 MMSCFD by Nov. 1," Bahlil said.Energy Minister Bahlil Plans Gas-Based Petrochemical Hub in East Kalimantan
Indonesia plans a gas-based petrochemical hub in East Kalimantan to boost industrial output, create jobs and raise regional revenue.Bahlil Weighs Ending Gas Export Contracts to Prioritize Domestic Supply
Bahlil Lahadalia says Indonesia may stop renewing gas export contracts with neighboring countries to prioritize domestic energy needs.Bahlil: No Golkar Chairman Has Ever Become Indonesia's President
Sudharmono, who served as vice president under President Suharto, was the highest-ranking government official among Golkar's former chairmenIndonesia Says Subsidized Fuel Stocks Cover 16–18 Days
Indonesia says fuel reserves remain adequate, with Pertalite stocks covering 16–18 days as Pertamina boosts deliveries.Indonesia Opens New LPG Plant in West Java to Reduce Import Dependence
Bahlil said the plant was expected to supply around 15% of LPG demand in Jakarta and West Java.Indonesia Aims $45 Billion Nickel Exports in 2026
Indonesia's nickel exports neared $34 billion in 2024, government data showed.Bahlil Says B50 Program Shields Indonesia from Diesel Import Disruptions
Indonesia says its B50 biodiesel program has ended diesel imports, even as Middle East tensions threaten global oil supplies.‘It’s Trump Who Sets Oil Price’: Prabowo’s Brother
Neither the Indonesian government nor OPEC sets the oil price, Hashim Djojohadikusumo says.Indonesia Rewrites Its Economic Model to Power Faster Growth
Indonesia bets on investment, downstream industries and clean energy to achieve 8% economic growth.The Latest
Ye Concert, Other Events to Draw 130,000 to GBK, Here’s What to Know
Around 130,000 visitors are expected at Jakarta’s GBK on Saturday as Ye’s concert and several major events take place.Indonesia Allocates Rp 722 Billion for Year-End Flight Ticket Tax Relief
Indonesia allocates Rp 722 billion to cover domestic flight ticket VAT during the 2026/2027 Christmas and New Year holidays.Greece Floats Shipbuilding Partnership with Indonesia
Greece says that it possesses “extensive expertise” as it woos Indonesia in shipbuilding partnership.Indonesian Stocks Rally 4.9%, but Foreign Investors Keep Selling
Indonesia’s JCI rose 4.9% last week, but foreign selling and MSCI downgrade risks continue to cloud the market outlook.Ye Concert in Jakarta to Deploy 2,000 Security Personnel
More than 2,000 personnel will secure Ye’s Jakarta concert on Saturday, as organizers urge fans to use public transport.Most Popular
