Ada Pertanyaan? Hubungi Kami 
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Ada Pertanyaan? Hubungi Kami Christina Desy, Kartini L. Makmur
Aiming to provide a better service to investors in the oil and gas sector, the Ministry of Energy and Natural Resources has reduced the number of licenses needed for upstream and downstream oil and gas activities. Businesses now only need to secure 42 licenses compared to the previous 51 licenses.To make the licensing process easier, the Ministry is also delegating authority to issue licenses to the one-stop integrated services (pelayanan terpadu satu pintu – PTSP) system operated by the Indonesian Investment Coordinating Board (BKPM). Some of the licenses covered include the General Survey License, Recommendation to Export and Import Oil and Gas, and Recommendation to Purchase, Use and Destroy Explosive Materials.
I Gusti Nyoman Wiratmaja, Acting Director General of Oil and Gas, explained that the Ministry will assign some of its officers to BKPM to evaluate investor applications with the applications to be processed directly by the officers. Some complex applications, however, may also be sent to the Directorate General of Oil and Gas for further evaluation.
Businesses are welcoming these changes to the licensing procedures. Sammy Hamzah, Deputy of the Indonesian Petroleum Association, said that the former oil and gas licensing system was very complicated and in some case it could take up to twenty years for an oil and gas company to secure all the required licenses.
“Not to mention that most of the licenses must be secured during the exploration stage,” said Mr. Hamzah.
Although excited by this development, Mr. Hamzah is still expecting the government implement the quick-win method to enable investors to secure all the required oil and gas licenses once they enter into a production sharing contract (PSC).
If this method is applied, Mr. Hamzah is optimistic that the Indonesian oil and gas industry will be more attractive to investors with increased investment volume and enhance broader economic development.
(hot/kc)
Christina Desy, Kartini L. Makmur
Aiming to provide a better service to investors in the oil and gas sector, the Ministry of Energy and Natural Resources has reduced the number of licenses needed for upstream and downstream oil and gas activities. Businesses now only need to secure 42 licenses compared to the previous 51 licenses.To make the licensing process easier, the Ministry is also delegating authority to issue licenses to the one-stop integrated services (pelayanan terpadu satu pintu – PTSP) system operated by the Indonesian Investment Coordinating Board (BKPM). Some of the licenses covered include the General Survey License, Recommendation to Export and Import Oil and Gas, and Recommendation to Purchase, Use and Destroy Explosive Materials.
I Gusti Nyoman Wiratmaja, Acting Director General of Oil and Gas, explained that the Ministry will assign some of its officers to BKPM to evaluate investor applications with the applications to be processed directly by the officers. Some complex applications, however, may also be sent to the Directorate General of Oil and Gas for further evaluation.
Businesses are welcoming these changes to the licensing procedures. Sammy Hamzah, Deputy of the Indonesian Petroleum Association, said that the former oil and gas licensing system was very complicated and in some case it could take up to twenty years for an oil and gas company to secure all the required licenses.
“Not to mention that most of the licenses must be secured during the exploration stage,” said Mr. Hamzah.
Although excited by this development, Mr. Hamzah is still expecting the government implement the quick-win method to enable investors to secure all the required oil and gas licenses once they enter into a production sharing contract (PSC).
If this method is applied, Mr. Hamzah is optimistic that the Indonesian oil and gas industry will be more attractive to investors with increased investment volume and enhance broader economic development.
(hot/kc)