Enviro News Asia, Tokyo — The Government of Indonesia is accelerating strategic measures in the energy sector by strengthening oil and gas investment while advancing renewable energy development amid global geopolitical uncertainties.
Bahlil Lahadalia stated that he has been directly assigned by Prabowo Subianto to focus on two key priorities: accelerating investment in the energy transition and ensuring the implementation of the Masela Block project.
He explained that the Masela Block project, which has undergone prolonged discussions, has shown significant progress following intensive engagements throughout 2025. The government has agreed on a development scheme with an initial investment value of approximately USD 20.9 billion, with potential increases driven by geopolitical dynamics and the integration of carbon capture and storage (CCS) technology.
Bahlil noted that the total investment value could exceed Rp300 trillion, underscoring the dominant role of the energy sector in national investment flows. The government is targeting accelerated implementation, including the Engineering, Procurement, and Construction (EPC) tender process and completion of the Front-End Engineering and Design (FEED) phase in 2026.
He emphasized that the project will play a crucial role in strengthening national energy security, as Masela is one of Indonesia’s largest gas projects with the potential to reinforce the country’s position in the global gas market. The government is also promoting the optimization of gas utilization for domestic needs to support downstream energy development.
In addition to oil and gas development, the government continues to advance renewable energy sources, including geothermal, hydropower, solar, and wind energy, provided they are supported by efficient and competitive technologies. Bahlil stressed that accelerating the energy transition is essential to anticipate unpredictable global geopolitical conditions.
The government is also intensifying cross-ministerial coordination, including with the Ministry of Foreign Affairs, to ensure investment certainty and smooth implementation of national strategic projects.
Through these measures, Indonesia aims to strengthen its energy resilience while positioning itself as a key player in the global gas industry and energy transition. (*)
