Transforming the Masela Block from Resource Extraction to Sustainable Policy

Abstract

The Masela Block, home to the Abadi liquefied natural gas (LNG) field in the Arafura Sea off Maluku Province, is one of Indonesia's largest single energy investments and a designated National Strategic Project. Discovered in 1998 and redesigned repeatedly over nearly three decades, the project is now advancing toward a final investment decision, with a planned production capacity of 9.5 million tonnes of LNG per year and an estimated investment of approximately US$20 billion. Yet the regency hosting the field, Southwest Maluku, records the lowest Human Development Index in Maluku Province, well below the national average, raising the question of whether a megaproject of this scale will translate into durable regional welfare or repeat the “resource curse” pattern documented in other Indonesian extractive regions. This paper applies a qualitative document and policy-analysis method, drawing on government regulations, corporate and regulator disclosures, national statistics, and comparative evidence from Bojonegoro Regency's local content regime, to examine how the Masela Block could be deliberately reimagined as a public policy instrument rather than a purely commercial gas project. It proposes a four stage policy framework combining statutory local content rules, a transparent regional endowment fund, a carbon capture based value chain, and stronger archipelagic connectivity, and offers concrete, actionable recommendations for national and regional policymakers