APINDO Supports ESDM Ministry Steps Simplify the Regulation Wednesday, April 4, 2018

  • 2018.04.04 Wednesday
  • 18:23

 EMR Communications Team


JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) steps to trim regulations that hamper investment has received positive support from the Chairman of the Indonesian Employers' Association (APINDO) in the EMR field, Sammy Hamzah. In doing so, this policy is expected to help industry players especially in the oil and gas sector.

"Deregulation is very helpful, which has been pointed out by the Ministry (EMR) with the removal of existing regulations and even regulatory changes that are not considered appropriate," Sammy said in an interactive discussion on one television station on Monday (2/4) ).


Gross split, for example. The package of policies is the goal of Government deregulation after getting input from the oil and gas business actors. "It's a very good signal for entrepreneurs," Sammy said.


Earlier in the discussion, Director General of Oil and Gas (Migas) Joko Siswanto said that deregulation provides a clear evidence of the entry of investors to name their business in Indonesia. "One of the proof of deregulation is that about 22 Working Areas use the gross split system because they feel able to cut bureaucracy, regulations, procedures can be trimmed," he explained on the same occasion.


This change is based on the wish of President of Indonesia Joko Widodo which directly translated by the Minister of Energy and Mineral Resources Ignatius Jonan. "We realize that the firmness of our strong leadership, we can finally remove the 186 rules, even in the future there will be more," said Joko.


However, Joko does not deny the regulation of the oil and gas sector should be accompanied by coordination with the policies of other related institutions. "Indeed, in the upstream oil and gas industry many stakeholders or the Ministry there are about nine involved and also in Local Government," said Joko.


One of the problems is the licensing of land use in seismic and drilling activities. To that end, the ESDM Ministry will continue to communicate intensely with the Ministry of Environment and Forestry.


From the tax side, the Ministry of Finance even provides convenience for investors. "Tax exemption is very beneficial to investors, hopefully until the end of this year many investors are interested," he added.


This coordination, acknowledged by Sammy, is now much improved. "This ministry does not stand alone, coordination becomes an ever-present challenge and we see the coordination of high-level leaders very much better now," he said.

For information, the ESDM Ministry has cut 18 regulations and 23 certifications / licenses / recommendations in the oil and gas sector since early 2018. (Kay)





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