Indonesia Vows to Prioritize Local Workers for Masela LNG Project

Indonesia Vows to Prioritize Local Workers for Masela LNG Project

Indonesia Vows to Prioritize Local Workers – TEMPO.CO, Jakarta – The Indonesian government has reiterated its commitment to placing local labor at the center of employment opportunities for the Masela LNG project, a pivotal initiative located in the Tanimbar Islands Regency of Maluku. This decision aims to ensure that the region’s workforce benefits directly from the project’s development, reinforcing the government’s strategy to boost local economic participation and reduce reliance on foreign labor. As the Masela Block project progresses, stakeholders emphasize its role in advancing national energy goals and fostering sustainable development for the communities involved.

Training and Development for Local Workforce

Energy and Mineral Resources Minister Bahlil Lahadalia highlighted that the government is already implementing programs to equip local residents with the expertise needed for the Masela LNG project. These initiatives include tailored training sessions and partnerships with local educational institutions to prepare the workforce for technical and managerial roles in the oil and gas sector. By focusing on local capacity building, the government aims to ensure long-term employment sustainability and reduce skill gaps that have historically hindered regional progress.

“Some children from the region have been sent to study in Cepu at the Energy and Mineral Polytechnic (Akamigas), which is under the Energy Ministry. They will all be absorbed into the Masela Block project,” Bahlil stated during the groundbreaking ceremony in Maluku on Thursday, July 16, 2026, as broadcast live on the Presidential Secretariat’s YouTube channel.

Employment Goals and Community Engagement

The Masela Block project is projected to generate approximately 12,000 direct jobs during its construction phase, with potential indirect employment opportunities reaching 36,000 people. Indonesia Vows to Prioritize Local Workers by ensuring that a significant portion of these roles are filled by residents of Maluku. The government has also emphasized the need to create a pipeline for future employment, particularly in the operational phase of the facility, which will require around 1,000 permanent workers. This approach not only supports immediate job creation but also aims to build a resilient local workforce capable of sustaining the project’s long-term success.

Minister Bahlil further noted that the recruitment strategy involves actively engaging with local communities to identify and address their needs. This includes working closely with regional leaders to streamline the hiring process and ensure transparency in job distribution. The focus is on empowering the local population by offering training and career pathways that align with the project’s operational requirements, thereby fostering a sense of ownership and long-term commitment among workers.

Local Business Partnerships and Economic Impact

Bahlil emphasized that supporting regional entrepreneurs is a key component of Indonesia Vows to Prioritize Local Workers. Local businesses will be given preference in the project’s supply chain and infrastructure development, ensuring that economic benefits extend beyond direct employment. This strategy includes contracts for goods and services, as well as opportunities for local firms to participate in the project’s construction and maintenance phases.

“Local entrepreneurs must be prioritized. This is in line with President Prabowo Subianto’s directive,” he said.

The initiative is expected to stimulate the regional economy by creating a multiplier effect. As the project’s infrastructure expands, it will generate demand for local products and services, from construction materials to transportation and logistics. This not only strengthens the local economy but also ensures that the benefits of the project are distributed more equitably, reducing the risk of wealth concentration in external investors.

Project Overview and Technological Innovation

The Masela Block project, spearheaded by INPEX Masela Ltd. in collaboration with Pertamina and Petronas, represents a significant leap in Indonesia’s energy sector. With an estimated investment of US$20.9 billion, the project is designed to produce 9.5 million tonnes of liquefied natural gas (LNG) annually, supply 150 million standard cubic feet of domestic pipeline gas daily, and generate 35,000 barrels of condensate per day. This ambitious scale underscores its importance as a cornerstone of Indonesia’s energy strategy and its potential to meet both domestic and international demand.

Notably, the project integrates carbon capture and storage (CCS) technology, marking Indonesia’s first LNG venture to incorporate this innovation from the outset. This advancement aligns with global efforts to reduce carbon emissions and positions the Masela Block as a model for sustainable energy development. By combining large-scale production with eco-friendly practices, the project not only addresses energy needs but also contributes to environmental preservation, reflecting the government’s dual focus on economic and ecological benefits.

Progress and Timeline for Final Investment Decision

As of early July 2026, the front-end engineering design (FEED) for the Masela LNG project has reached 79.56%, surpassing initial projections. This milestone indicates that the project is on track to meet its operational targets and solidifies its position as a major investment in the region’s infrastructure. Major facility designs and permits are progressing smoothly, with the final investment decision (FID) anticipated by the end of the year.

Indonesia Vows to Prioritize Local Workers in the decision-making process, ensuring that the project’s timeline reflects the needs and aspirations of the local population. The government has worked closely with stakeholders to expedite approvals and streamline the development process, demonstrating its commitment to delivering the project efficiently while maintaining a focus on community welfare. This progress is a testament to the collaborative efforts between the public and private sectors to realize the project’s vision.

President’s Vision and Project Significance

President Prabowo Subianto officially launched the construction phase of the long-awaited Masela LNG project, celebrating a major milestone after nearly three decades of planning. His speech at the virtual ceremony from Merdeka Palace in Jakarta underscored the project’s importance in securing Indonesia’s energy future and enhancing its global competitiveness in the LNG market. The president highlighted the urgency of completing the project swiftly, emphasizing that energy security is critical for national survival and economic stability.

“We have been waiting for this project for almost three decades, across three administrations. The people have waited for nearly 30 years. Thank God, today we begin construction,” Prabowo said in a virtual address from Merdeka Palace in Jakarta.

The project’s significance extends beyond economic gains, as it aims to establish a blueprint for future infrastructure developments in Indonesia. By prioritizing local labor and businesses, the Masela LNG project serves as a model for integrating national development goals with international investment standards. This approach not only supports immediate employment but also ensures that the local community remains a central stakeholder in the project’s lifecycle, fostering a sense of shared responsibility and long-term benefit.

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