Indonesia Restarts USD 21 Billion Masela Gas Project After Nearly Three Decades

Indonesia on Thursday officially revived the long-delayed Masela LNG project, marking a major milestone for one of the country's largest energy investments after nearly three decades of delays.

The USD 21 billion project is designed to produce 9.5 million metric tons of liquefied natural gas (LNG) annually, along with up to 35,000 barrels of condensate per day and 150 million cubic feet of natural gas per day.

Speaking at the groundbreaking ceremony in the Tanimbar Islands, Energy Minister Bahlil Lahadalia said at least 60% of the gas output would be allocated to the domestic market, with the remainder exported.

He said the project would strengthen Indonesia's energy security by expanding supplies of cleaner energy, attracting long-term investment, accelerating economic development in eastern Indonesia, and creating jobs and business opportunities.

“The project will employ around 12,000 workers during the construction phase alone,” Bahlil said.

The investment also includes USD 1 billion for carbon capture and storage (CCS) technology to reduce emissions from the project.

The offshore Masela block lies in the Arafura Sea, about 750 kilometers south of Ambon, near Australia's maritime boundary, although the entire concession is located within Indonesian waters.

President Prabowo Subianto, addressing the ceremony via video link from Jakarta, described Masela as a strategic national project that should face no further delays.

“We have waited almost three decades for this project. Today, we are finally beginning construction,” Prabowo said.

“Development must not be delayed again. It should be completed as quickly as possible.”

The Masela block is operated by Inpex Masela Ltd, which holds a 65% participating interest. The remaining 35% is jointly owned by Pertamina and Petronas following their acquisition of Shell's stake in 2023.

Originally awarded in 1998 under a 30-year production-sharing contract, the concession was later extended by 20 years after repeated delays in project development.

According to a study by the Institute for Economic and Social Research (LPEM) at the University of Indonesia, the project could contribute about USD 137.7 billion to Indonesia's gross domestic product between its startup and 2055.

Source: Jakarta Globe

Govt Names Consortia for Second Batch of Waste-to-Energy Projects

State asset fund Danantara has selected eight consortia to develop a second batch of waste-to-energy (WtE) projects, bringing in French, Chinese and domestic companies, as it seeks to attract foreign capital and technology into the country’s waste management industry.

The second phase covers eight WtE projects across 20 cities and regencies, with the selected developers receiving conditional letters of award (CLoA) before progressing to full project awards, subject to meeting procurement, technical and financing requirements, Danantara said in a statement on Monday.

The projects are located in Medan in North Sumatra, Bekasi regency in West Java, Serang in Banten, Semarang in Central Java, Surabaya in East Java, Bogor in West Java, Lampung, and Yogyakarta. Development is being overseen by PT Daya Energi Bersih Nusantara (Denera), Danantara’s WtE unit.

“The selection process was conducted objectively and in accordance with international best practices,” Denera CEO Fadli Rahman said in a statement.

“We assessed bidders based on their project track record, financial capability, implementation and commercial readiness, risk management, long-term commitment and execution experience in Indonesia.”

French companies are leading two of the eight selected consortia, while Chinese firms will participate in at least four projects, including two as consortium leader.

Among the selected developers are France’s Suez, which will develop the Medan project through the SUEZ-IAN Consortium and France’s Veolia Environmental Services Asia for the Semarang project.

China’s Everbright will lead the Bekasi regency project, while China’s Tianjin CITICC will partner with state-owned PT Pertamina New & Renewable Energy (NRE) on the Yogyakarta project.

The Greater Serang project was awarded to Masa Depan Energi Indonesia, a consortium between PT Chandra Waste Energy, an affiliate of petrochemical producer PT Chandra Asri Pacific, and China’s Beijing GeoEnviron Engineering and Tech Inc.

The plant is designed to process about 1,161 tonnes of waste per day. The Surabaya project, meanwhile, went to the Mentari Citra Lestari Consortium, comprising PT Bakrie Power, PT Acritas Karya Persada and China’s SUS Indonesia Holding Limited.

The facility is expected to handle around 1,100 tonnes of municipal waste daily. The awards remain conditional, with each consortium required to complete feasibility studies, finalize project structures, establish joint ventures, secure commercial agreements and obtain financing approval before receiving final awards, according to the release.

Danantara said 68 applications from 85 pre-qualified providers had been submitted for the eight project locations, with each site also assigned a reserve bidder should the selected consortium fail to meet the conditions attached to the award.

The projects form part of the country’s national WtE program under Presidential Regulation No. 109/2025, which seeks to expand electricity generation from municipal waste while addressing mounting waste disposal challenges.

Construction of the first batch began on July 8 with a IDR 3 trillion (USD 184 million) plant in South Denpasar, Bali, while projects in Bekasi and Bogor are expected to break ground soon.

The projects, part of a broader plan to build 33 plants nationwide worth a combined USD 5.6 billion, are included in state utility PLN’s long-term electricity procurement plan (RUPTL) as renewables.
 

Source: The Jakarta Post

Indonesia to Make Corporate Packaging Waste Management Mandatory

The Indonesian government is drafting a ministerial regulation on extended producer responsibility (EPR) to legally mandate that companies manage their product and packaging waste.

Environment Minister Mohammad Jumhur Hidayat said the upcoming regulation aims to shift the financial and logistical burden of waste management away from taxpayers and municipal governments and onto the private sector.

"We will soon issue a ministerial regulation on extended producer responsibility or EPR. We will require them (the private sector) to manage their waste," Hidayat said during the "Waste to Energy Talks: Reducing Waste, Powering the Future" event in Jakarta on Thursday.

According to the minister, nearly 10,000 factories in Indonesia that manufacture plastic-packaged products could fall under the jurisdiction of the new policy.

To help businesses comply with the impending mandate, Hidayat suggested the utilization of a Packaging Recovery Organization (PRO), a collective, industry-led entity designed to help member companies efficiently collect, track, and recycle packaging waste.

The policy push comes as government data reveals a critical waste management deficit in Indonesia. Daily national waste generation has reached approximately 141,926 tons, of which only 26% is properly managed, leaving 74% untreated.

Furthermore, 72% of final disposal sites (TPA) still operate using open dumping systems, and 36.59% of waste is discharged directly into the environment.

Hidayat noted that the government is currently calculating the exact financial and operational contribution formulas for producers under the EPR scheme.

The upcoming regulation will build upon the foundation laid by the Minister of Environment and Forestry Regulation No. 75 of 2019, which established a roadmap for voluntary corporate waste reduction.

The new policy, however, represents a transition toward mandatory corporate accountability.

Hidayat concluded by calling for a comprehensive end-to-end waste system, combining source sorting with advanced processing technologies like waste-to-electricity processing (PSEL), refuse-derived fuel (RDF), and pyrolysis.

Source: Antara News