Presidential Directive to Increase Oil Production

Presidential Directive No. 2 of 2012 on Increasing National Oil Production (“Presidential Directive”) was issued to increase national oil production to an average of at least 1.01 million barrels per day by 2014, in order to improve energy security.

The Presidential Directive calls on various ministers, governors, and regents/mayors to take measures to increase national oil production and address problems that hamper efforts to increase, optimize and accelerate national oil production.

More specifically, the Presidential Directive provides instructions for:

1.

The Minister of Energy and Mineral Resources (to assess regulations, encourage optimal oil production, process Development Plan applications within 90 days after receiving proposals, improve monitoring, and increase efforts to resolve obstacles to petroleum production);

2.

The Minister of Public Works (to improve and develop infrastructure to support the transportation of petroleum products nationwide, and to support planning and public works legislation that would increase oil production);

3.

The Minister of Finance (to provide tax and customs incentives, and support financial legislation that would increase oil production);

4.

The Minister of Interior Affairs (to inventory and assess regulations that hamper oil production and support local government efforts to improve oil production);

5.

The Minister of Transportation (to increase the functionality of transportation infrastructure, align the licensing period for using transportation infrastructure with the oil operations activity, and support transportation legislation that would increase oil production);

6.

The Minister of Agriculture (to align policy related to the use of agricultural areas to support oil production);

7.

The Minister of Forestry (to support policies that optimize forest use to increase oil production and to accelerate the process for completing licenses to use forest areas for upstream petroleum business activities);

8.

The Minister of Environment (to speed up approvals of Environmental Impact Assessments (AMDAL), Environmental Management Efforts (UKL), and Environmental Monitoring Efforts (UPL) and support environmental legislation that would increase oil production);

9.

The Minister of Justice and Human Rights (to harmonize regulations to increase oil production);

10.

The Minister for State Owned Enterprises (to support land acquisition process for State Owned Enterprises for national upstream oil activities, and to support helpful policies);

11.

The Chairman of the National Land Agency (to accelerate the process for granting land rights used to support oil production and support land legislation that would increase oil production);

12.

The Chairman of the Upstream Activity Oil and Gas Agency (to approve certain processes within the stipulated timelines; improve oil production facilities; increase efforts to optimize field production; increase efforts to control and supervise the implementation of cooperation contracts; accelerate development of new, marginal, and idle fields; and optimize the use of suspended wells);

13.

Governors (to guide and supervise local government, accelerate and ease licensing processes, and support policies in order to increase oil production); and

14.

 Regents/Mayors (to accelerate and ease licensing processes, and support policies in order to increase oil production).

......

Subscribe to read more legal analysis.

Hukumonline Pro Intelligence

Platform AI hukum terpercaya sebagai solusi komprehensif riset Anda

professionalprofessionalProfessional Solutions
professionalprofessionalUniversity Solutions
*Syarat dan ketentuan berlaku

Presidential Directive No. 2 of 2012 on Increasing National Oil Production (“Presidential Directive”) was issued to increase national oil production to an average of at least 1.01 million barrels per day by 2014, in order to improve energy security.

The Presidential Directive calls on various ministers, governors, and regents/mayors to take measures to increase national oil production and address problems that hamper efforts to increase, optimize and accelerate national oil production.

More specifically, the Presidential Directive provides instructions for:

1.

The Minister of Energy and Mineral Resources (to assess regulations, encourage optimal oil production, process Development Plan applications within 90 days after receiving proposals, improve monitoring, and increase efforts to resolve obstacles to petroleum production);

2.

The Minister of Public Works (to improve and develop infrastructure to support the transportation of petroleum products nationwide, and to support planning and public works legislation that would increase oil production);

3.

The Minister of Finance (to provide tax and customs incentives, and support financial legislation that would increase oil production);

4.

The Minister of Interior Affairs (to inventory and assess regulations that hamper oil production and support local government efforts to improve oil production);

5.

The Minister of Transportation (to increase the functionality of transportation infrastructure, align the licensing period for using transportation infrastructure with the oil operations activity, and support transportation legislation that would increase oil production);

6.

The Minister of Agriculture (to align policy related to the use of agricultural areas to support oil production);

7.

The Minister of Forestry (to support policies that optimize forest use to increase oil production and to accelerate the process for completing licenses to use forest areas for upstream petroleum business activities);

8.

The Minister of Environment (to speed up approvals of Environmental Impact Assessments (AMDAL), Environmental Management Efforts (UKL), and Environmental Monitoring Efforts (UPL) and support environmental legislation that would increase oil production);

9.

The Minister of Justice and Human Rights (to harmonize regulations to increase oil production);

10.

The Minister for State Owned Enterprises (to support land acquisition process for State Owned Enterprises for national upstream oil activities, and to support helpful policies);

11.

The Chairman of the National Land Agency (to accelerate the process for granting land rights used to support oil production and support land legislation that would increase oil production);

12.

The Chairman of the Upstream Activity Oil and Gas Agency (to approve certain processes within the stipulated timelines; improve oil production facilities; increase efforts to optimize field production; increase efforts to control and supervise the implementation of cooperation contracts; accelerate development of new, marginal, and idle fields; and optimize the use of suspended wells);

13.

Governors (to guide and supervise local government, accelerate and ease licensing processes, and support policies in order to increase oil production); and

14.

 Regents/Mayors (to accelerate and ease licensing processes, and support policies in order to increase oil production).

......

Subscribe to read more legal analysis.

Hukumonline Pro Intelligence

Platform AI hukum terpercaya sebagai solusi komprehensif riset Anda

professionalprofessionalProfessional Solutions
professionalprofessionalUniversity Solutions
*Syarat dan ketentuan berlaku
2026 Hak Cipta Milik Hukumonline.com
Cookies Info