Jakarta. Energy and Mineral Resources Minister Bahlil Lahadalia voiced concerns on Thursday over the prolonged delay in gas production at the Masela natural gas block in Maluku, which has remained idle for over two decades despite significant investments and vast proven gas reserves.

Speaking at the Outlook 2025 seminar hosted by Beritasatu, a sister publication of the Jakarta Globe, at The Westin Hotel in Jakarta, Bahlil pointed to Indonesia’s heavy reliance on energy imports, which cost the government Rp 500 trillion ($30.75 billion) annually, even though the country possesses abundant domestic reserves.

The administration of President Prabowo Subianto has made energy independence a top priority, aiming to boost domestic oil and gas production while cutting down on expensive energy imports, Bahlil said.

“The Masela Block has been in limbo for 26 years. If production does not begin this year, we will conduct a thorough evaluation according to the law,” he warned. “We must ensure that corporations do not dictate national policies --rather, the nation should guide corporations. The key is to act firmly but not authoritarian.”

This is not the first time the government has set a production deadline for Masela. Bahlil’s predecessor, Arifin Tasrif, had previously urged the project’s operators to start production by December 30, 2029, following the entry of state-owned energy company Pertamina as a participating partner in the block.

Located offshore near Nustual Island in the Tanimbar Islands Regency, the Masela Block holds an estimated gas potential of 1,600 MMSCFD, equivalent to 9.5 million tons of liquefied natural gas (LNG) per year, along with an additional 35,000 barrels of condensate per day, according to government data.

Last month, Investment Minister Rosan Roeslani revealed that President Prabowo had expressed particular concern over Masela’s prolonged delays and called for concrete measures to accelerate production.

The Masela gas block is operated by Japanese energy giant Inpex Masela Ltd, which holds a 65 percent participating interest. The remaining 35 percent is jointly owned by Pertamina and Malaysia’s Petronas, following their July 2023 acquisition of Shell Upstream Overseas Services Limited’s stake.

Originally awarded in November 1998 with a 30-year concession set to expire in 2028, the contract was later extended by another 20 years, further prolonging the project’s timeline.

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