BKPM to Control Oil and Gas Investment Permits


Marcell Sihombing
 
As a part of efforts to boost oil and gas activities in Indonesia, the Ministry of Energy and Mineral Resources (ESDM) will hand over the authority to issue oil and gas investment permits to the Indonesia Investment Coordinating Board (BKPM) Capital. This action is part of the Single Door Integrated Service (Pelayanan Terpadu Satu Pintu – PTSP) for management of investment activities.
 
“Today we will transfer all oil and gas permit processes to BKPM. Some, however, still be referred back to the Directorate General of Oil and Gas and the Special Unit for Upstream Oil and Gas Activities [SKK Migas],” explained Mr. Said last Wednesday.
 
Giving further details on the oil and gas permit process, Mr. Said explained that currently businesses now only need to secure 42 permits. This is a significant reduction, as previously businesses had to secure nearly a hundred permits when the licensing process was still handled at the Ministry of ESDM.
 
Efforts to increase oil and gas activities is part of the government’s energy policy.  Indroyono Soesilo, Coordinating Minister for Maritime Afairs, explained that the government has three main objectives under its current energy policy, namely increase oil and gas reserves, fulfill  oil and gas production targets, and addressing energy shortages.
 
Mr. Soesilo said that the oil and gas production target for 2014 is 818,000 barrels a day, and  in 2009 it was 764,000 barrels per day. In other words, Indonesia has never achieved its estimated targets over the last five years. Mr. Soesilo also stated that the President Jokowi is focusing on means to increase oil and gas reserves.
 
Regarding energy development priorities, Mr. Soesilo confirmed the consensus that oil and gas remains an important energy supply in addition to coal and renewable energy. This is the reason why increasing production and finding new reserves is necessary.
 
Addressing current energy shortages, the government intends to accelerate the construction of electric power plants. Mr. Soesilo stated that currently Indonesia only has 50,000 gigawatts of electricity while the target for 2020 is 93,000 gigawatt. Given this target, the construction of power plants to supply 35,000 MW of electric power over the next five years is necessary  in order to achieve the target.
 
(hot/kc)

Marcell Sihombing
 
As a part of efforts to boost oil and gas activities in Indonesia, the Ministry of Energy and Mineral Resources (ESDM) will hand over the authority to issue oil and gas investment permits to the Indonesia Investment Coordinating Board (BKPM) Capital. This action is part of the Single Door Integrated Service (Pelayanan Terpadu Satu Pintu – PTSP) for management of investment activities.
 
“Today we will transfer all oil and gas permit processes to BKPM. Some, however, still be referred back to the Directorate General of Oil and Gas and the Special Unit for Upstream Oil and Gas Activities [SKK Migas],” explained Mr. Said last Wednesday.
 
Giving further details on the oil and gas permit process, Mr. Said explained that currently businesses now only need to secure 42 permits. This is a significant reduction, as previously businesses had to secure nearly a hundred permits when the licensing process was still handled at the Ministry of ESDM.
 
Efforts to increase oil and gas activities is part of the government’s energy policy.  Indroyono Soesilo, Coordinating Minister for Maritime Afairs, explained that the government has three main objectives under its current energy policy, namely increase oil and gas reserves, fulfill  oil and gas production targets, and addressing energy shortages.
 
Mr. Soesilo said that the oil and gas production target for 2014 is 818,000 barrels a day, and  in 2009 it was 764,000 barrels per day. In other words, Indonesia has never achieved its estimated targets over the last five years. Mr. Soesilo also stated that the President Jokowi is focusing on means to increase oil and gas reserves.
 
Regarding energy development priorities, Mr. Soesilo confirmed the consensus that oil and gas remains an important energy supply in addition to coal and renewable energy. This is the reason why increasing production and finding new reserves is necessary.
 
Addressing current energy shortages, the government intends to accelerate the construction of electric power plants. Mr. Soesilo stated that currently Indonesia only has 50,000 gigawatts of electricity while the target for 2020 is 93,000 gigawatt. Given this target, the construction of power plants to supply 35,000 MW of electric power over the next five years is necessary  in order to achieve the target.
 
(hot/kc)
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