ESDM認可手続きの簡素化( Friday, October 27, 2017)

  • 2017.10.31 Tuesday
  • 14:13

3 Years of EMR Sector Performance: Simplification of ESDM Sector Permit for a More Efficient and Accountable Bureaucracy
  Friday, October 27, 2017


The Ministry of Energy and Mineral Resources (ESDM) continues to seek simplification of licensing in the ESDM sector which includes oil and gas(migas), mineral and coal (minerba), electricity and renewable energy and energy conservation (EBTKE).

In total, licensing has been transferred to the One Stop Investment Coordinating Permit (PTSP - BPKM) of 63 units, so currently the Ministry of EMR only issued 15 licenses, covering 6 oil and gas permits, 6 minerba permits, and 3 EBTKE licenses.

The KESDM licensing service at PTSP also includes a 3 hour ESDM licensing service (ESDM3J) ie Temporary Operating Permit covering Power Supply, Petroleum Storage, Storage of Processed Products / CNG, LPG Storage, Petroleum Processing, Natural Gas Processing, General Oil Trading Earth / BBM, and General Trading Processed Products.

In the oil and gas (migas)sub sector, the permits still handled by the Ministry of Energy and Mineral Resources are only 6 licenses (2 upstream and 4 downstream) and 4 non-licensing. In the Ministerial Regulation (Permen) of ESDM Number 29/2017 mentioned the permit includes: Permit Survey; Permit for Utilization of Oil and Gas Data; Migas Processing Business License; Oil and Gas Storage Business License; Business License for Oil and Gas Transportation; and Oil and Gas Business License. Arrangement of oil and natural gas permits is intended to make licensing simpler, transparent, effective, efficient and accountable.

The simplification of licensing of minerba subsector is contained in the Minister of Energy and Mineral Resources No. 34/2017 which includes 6 licenses namely Exploration IUP; IUPK Exploration; Production Operation IUP; IUPK Production Operation; IUPK Production Special Operations for processing and / or purification; and IUJP. It aims to encourage the development of business, ensure legal certainty, and business certainty and improve the effectiveness of licensing in the field of mineral and coal mining business.

As for the electricity sector, the simplification of licensing has been started in Regulation of Minister of Energy and Mineral Resources No. 12/2016, motivated by efforts to increase electricity connection service to low voltage consumers and Indonesian legal entities that carry out the construction work and installation of low voltage electrical power installation.

Currently, all electricity licenses have been transferred to BKPM and the Ministry of EMR only issues 3 certification (electrical equipment and equipment certification, electric power competency certification, electrical engineering competency certification and certification of power supporting service business entity) and 2 recommendations (Plan for Import of Goods for recommendation to BKPM and Plan of Use of Foreign Workers (RPTKA) for recommendation to the Ministry of Manpower).

In the EBTKE subsector, after most licensing has been transferred to BKPM, Permen ESDM No. 12/2016 mentions 3 licenses and 7 types of non-licensing still handled by Directorate General of EBTKE include:

Licensing   :
1. License to Implement Minimum Energy Performance Standards (SKEM) and Inclusion of Energy Efficient Label  for Air Conditioning Equipment (AC);
2. Label Affixing Energy Saving Label on Swaballast Lamp; and
3. Business License of Biodiesel Fuel  (Biofuel).
Non Licensing :
1. Issuance of certificates of feasibility of use of geothermal equipment;
2. Issuance of certificate of feasibility of geothermal installation;
3. Recommendation of foreign worker usage plan;
4. Recommendation for permission to use foreign workers;
5. Recommendation of geothermal goods import plan;
6. SKT (Surat Ketarangan Terdaftar =certification of registration)  
    Service of energy conservation support (ESCO); and
7. Recommendation of export and import of biofuels (BBN= Bahan Bakar Nabati).





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