Jakarta. The Masela Block liquefied natural gas (LNG) project is expected to generate more than $44 billion in state revenue over its lifetime while creating thousands of jobs, Energy and Mineral Resources Minister Bahlil Lahadalia said on Thursday as the government broke ground on one of Indonesia's largest energy investments.

Valued at $20.95 billion (Rp 390 trillion), the national strategic project is projected to produce 9.5 million tons of LNG annually and 35,000 barrels of condensate per day, helping boost Indonesia's oil and gas output.

Bahlil said the project is expected to generate $37.8 billion in direct state revenue, along with an additional $6.43 billion in indirect tax receipts throughout its construction and operational phases.

The project is also expected to employ around 12,000 workers during construction and between 800 and 1,000 workers once operations begin.

Bahlil stressed that local residents, particularly those from Tanimbar Islands Regency and other parts of Maluku, should be prioritized for employment.

"Professional positions will first be filled by qualified candidates from the first and second tiers. Only if those needs cannot be met will we recruit workers from outside the region," Bahlil said Speaking at the groundbreaking ceremony.

He added that several young people from Tanimbar are currently studying at state-run oil and gas academies and will be given priority for jobs at the Masela Block after graduation.

Bahlil also said large-scale investments should deliver tangible benefits to local communities rather than focusing solely on capital inflows.

"The success of an investment should not be measured only by how much money comes in, but also by how much it improves the welfare of the people living around the project," he said.

Located in the Arafura Sea, about 150 kilometers south of Masela Island in Tanimbar Islands Regency, Maluku, the Masela Block is one of Indonesia's largest upstream gas development projects and has been designated a national strategic project.