Minister of Energy and Mineral Resources: Regulation and Licensing that Inhibits Investment Revoked Date: March 5, 2018

  • 2018.03.06 Tuesday
  • 21:00

        MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

    PRESS CONFERENCE

    Number: 0022.Pers / 04 / SJI / 2018

 

Ministry of Energy and Mineral Resources (ESDM) re-arranged dozens of regulations and permissions that are considered overlapping and is no longer relevant. So far, 90 regulations and 96 certifications / recommendations / licensing in the EMR sector have been revoked. The regulation and licensing are scattered in subsectors oil and gas(migas) mineral and coal (minerba), electricity, renewable energy and energy conservation (EBTKE) as well as regulations on the Special Unit for Upstream Oil and Gas Business Activities (SKK Migas ) and Oil and Gas Regulatory Agency (BPH Migas).

"The total revoked or revised regulation is 90 and 96 certificates / recommendations / licensing. So, the total is 186," ESDM Minister Ignatius Jonan told a press conference of ESDM Sector Regulation Arrangement at the ESDM Ministry Office on Monday (5/2) night.

 

Minister Jonan continued the simplification of licensing is the mandate of President of Indonesia Joko Widodo in order to foster economic competitiveness for the business world. "According to Mr. President's suggestion that we should be business friendly, investment friendly, the goal is that we can create jobs and economic growth will continue to increase," said Minister Jonan.

 

Total of 90 regulations that have been simplified, the details are as follows. As many as 18 regulations from oil and gas(migas), 20 regulation of electricity, 32 on mineral and coal (minerba), 5 regulation renewable energy and energy conservation (EBTKE), 12 rules of implementation on the Special Unit for Upstream Oil and Gas Business Activities (SKK Migas )and 3 regulations on Oil and Gas Regulatory Agency (BPH Migas).While the 96 certifications / recommendations / permits revoked are 23 coming from oil and gas, 64 from mineral and coal (minerba) and 9 from renewable energy and energy conservation (EBTKE).

 

Some concrete examples of licensing in the field of oil and gas was removed  among others Recommendation of Foreign Workers (permission to use foreign workers / IMTA and plan of foreign labor usage / RPTKA), Petroleum distributor certificate Letters Registered Information (SKT) of oil and gas supporting company, design approval and approval of the use of oil and gas equipment.

 

"In carrying out oil and gas supporting business activities as long as it takes Letters Registered Information (SKT),it is felt one of the obstacles in oil and gas investment. The process itself  take several days and its impact so far only time passing, impact for delay and extend  long bureaucracy chain, we revoked "said Ego Syahrial, Executor task Director General of Oil and Gas.

 

"What we remove in the downstream of oil and gas for example to build a channel agency or gas station, so far the Agency needs at least 6 months to process the name of the supplier certificate. It was removed because it inhibit. Can imagine a country as large as this, we actually need a channeling agency,  we already think we need sub-dealer agencies, so the management should be made easier, "added Ego.

 

In addition, in the electricity sector, the impacts of 20 regulations revoked include the smoothening of the Dwelling Time. The removal of inspections from the border to the post border and clarifying the classification of electrical appliances products makes it easier to supervise.

 

In the field of mineral and coal, 64 licenses are cleared, among others, registration marks for transportation and sales companies, processing and / or refining principle permits, Letters Registered Information (SKT) of mineral and coal (minerba), and foreign labor recommendations.

 

For EBTKE fields, concrete examples licensing removed such as permission to use geothermal explosives, recommendation of purchase and use of geothermal explosives, recommendations for destruction of Geothermal explosives, Recommendations of plan of foreign labor usage ( RPTKA) and permission to use foreign workers (IMTA), the issuance of Certificates of Feasibility of Appliances and Installations of Geothermal and Letters Registered Information (SKT) of Geothermal Support Services.

 

Meanwhile, the regulation in Special Unit for Upstream Oil and Gas Business Activities (SKK Migas )is deleted by 12 regulations or the Governance Guidelines (PTK) which impacts the bureaucracy process of land procurement, supervision of Health management, Safety and Environmental Protection (K3LL), monitoring and evaluation of the upstream facility of upstream oil and gas operations.

 

Furthermore, in the near future, each unit will hold further socialization related to the simplification made to the business entities and related stakeholders. In more detail a list of 90 regulations and 96 deleted or simplified permissions and their effects can be downloaded here: (https://www.esdm.go.id/assets/media/content/content-pencabutan-penyederhanaan-regulasi-dan-perizinan-sektor-esdm-.pdf).

 

Head of Communications Bureau, Information Services

Public, and Cooperation

Agung Pribadi

 

For further information please contact:

Head of Communications Bureau, Public Information Services and Cooperation,

Agung Pribadi (08112213555)

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